We’re getting prepped ahead of Friday’s trading session – but with multiple scenarios setting-up for our favorite markets, it’s important to remember those little clues that are MORE important than the actual entry pattern.
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Crude Oil is bearish with a strong run lower, which tells me to look for selling-opportunities at the high of a channel.
The problem, however, is that this channel is WIDE, which means there will likely be a momentum shift before we get the entry pattern to sell, reminding me to wait for a more specific entry pattern.
E-Mini S&P is range-bound with bearish momentum this evening, which tells me to look for entry patterns to sell above the range high tomorrow morning.
The challenge, however, is this rising support trend-line, telling me I need to beware selling low, and focus on selling as high as possible on Friday morning.
Nasdaq is bearish with a lazy trend going lower, which tells me I should expect a relatively deep pullback before trying to sell this back down to the lows.
Knowing this, that big move higher will likely give the buyers the edge, which tells me I need to adjust my entry set-up to absorb that momentum.
Gold is bearish with a strong run lower, telling me to look for selling-opportunities up at key resistance levels tomorrow morning.
Keeping that in mind, I’m looking for sell set-ups using the high of this Spike & Channel pattern, keeping a close eye on the momentum of this pullback because that will tell me which entry pattern will work best.
Euro is range-bound with bearish momentum going into Friday’s session, which tells me to focus on selling above the range using buyer-failure patterns.
Which reminds me, the recently trend was bullish, so I’m watching for those buyers to try and buy the highs so I can sell into their stops for an easy move back to the lows.
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Please remember that economic news, both scheduled and un-scheduled will increase volatility and decrease liquidity in the market in the short-term, which causes price-action to react inconsistently with the levels of support and resistance mentioned in this video. Trading during economic news reports is dangerous and highly discouraged, no matter what your level of experience.
PLEASE DO NOT TRADE DURING TIMES OF MAJOR ECONOMIC NEWS
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