Trading With *Failed* Breakouts On Friday

Video Length: 00:48:50

This party isn’t over just yet, let’s finish the week strong!

Markets turned sideways today after a week of strong trends, which means our trading plan for tomorrow is rather simple…

I’ll be focused on trading *failed* breakouts around the edges of the range, while keeping my eyes open for *real* breakouts that can actually be trusted…

How do you know which are real and which are fake? Where’s the best place to get in and out? I’ll show you all the details in tonight’s video…

E-Mini S&P (ES):

(Click on image to enlarge)

E-Mini Keys to Success:

  • Buyers got a V-bottom off the overnight lows and ran price higher on strength before they pulled-back to allow buyers to get in again before they retested the highs and completed the “double-up” off the lows.
  • Bulls would love to buy the low of this spike and channel or a breakout to new highs.
  • Sellers don’t have any momentum right now so they need to wait for a 123-Reversal pattern.

Best Trades for Tomorrow: 

  • [UP] – 123-breakout & 2-Try breakout to buy
  • [DOWN] – seller failure to buy (or) 123-Reversal to sell
  • Remember to avoid trading inside the range.

E-Mini Nasdaq (NQ):

(Click on image to enlarge)

Nasdaq Keys to Success:

  • Buyers grabbed control off the overnight lows, but after a strong run higher they were unable to keep the trend moving and turned into a sideways trading-range to finish the day.
  • Buyers will be looking for opportunities to buy breakouts, or buy at support levels below the range, but they need to be careful because the rotation off the high gives the bears all the momentum.
  • Sellers have a difficult job because there isn’t much open space below the range to get short after a breakout.

Best Trades for Tomorrow:

  • [UP] – 123-breakout to buy (or) nested failure to sell
  • [DOWN] – seller failure to buy (or) 123-breakout to sell
  • Avoid the middle of the range
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