Wide Range Trading Strategy

(Video length 00:56:13)

Markets are heading into one of the most challenging times of the year – the end of the First Quarter – and with a handful of WIDE RANGES on our charts, we know momentum, and the proper entry patterns will be the key to our success on Tuesday.

Crude Oil Range-Bound – But Look Left!

Crude Oil is bullish into the high of a wide trading-range this evening, which tells me to expect another leg higher before looking to sell it down again later in the session.

Knowing this, I have to respect the likelihood of sellers waiting above these highs, which means the most reliable buy set-ups will come with seller-failures off the high.

E-Mini S&P is Trying to Rally Higher – Will It Hold?

E-Mini S&P is range-bound and trading at the highs, which tells me to look for selling opportunities using the buyer-failure pattern to send price back down to re-test the lows.

And remember, once back to the range lows, the plan switches to buying the lows using the same pattern, except in the opposite direction.

Nasdaq Keeps Rotating Back and Forth

Nasdaq is trading sideways with a WIDE range on the chart, which tells me to expect a WIDE ‘2-Try Rule’ before I can start confidently selling this market back down to the lows.

Furthermore, if these buyers can get a successful 123-Breakout, we have the potential for a massive short-covering rally back to re-test last Friday’s high!

Gold is Bullish – But Where’s the Next Objective?

Gold is bullish with a strong run higher, finishing just ahead of a major resistance level overhead.

Knowing this, I want to buy, but I don’t want to get caught chasing the market higher, so I’m going to wait for a deep pullback and look for buying opportunities using a seller-failure pattern instead.

Euro is Bullish into a Narrow Range (the big clue!)

Euro is bullish into a narrow trading-range this evening, which tells me that finding a good risk-reward-ratio is going to be the key to buying this market tomorrow morning.

Going further, I need either a DEEP pullback off these highs or a strong 123-Breakout to new highs before I can start looking to buy this market.

 

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