Four Leg Trading Strategy | Crude Oil, Emini, Nasdaq, Gold & Euro

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We’re headed into Friday morning’s Non-Farm Payroll Report with a handful of ranges, but the biggest clue I see are these “four legged moves”, which tell us exactly what to look for tomorrow morning.
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Crude Oil is bullish into a trading-range, which tells me to look for buying opportunities below the range using seller-failure patterns.

Knowing this, I’m also looking for a potential breakout to new highs, which may be an easy buying opportunity ahead of the measured-move objective.

E-Mini S&P is bearish into a trading-range, which tells me to look for selling-opportunities up near the high of the range tomorrow morning.

However, I’m also keeping a close eye on the momentum shifting as price goes higher, which may tip us off to a possible bullish reversal after the news tomorrow morning.

Nasdaq is bearish with a strong two-legged run lower today, which tells me to look for selling-opportunities up near the high of a Hidden Channel.

Considering the strength of this move lower, I’m also looking for a possible “overshoot” of today’s low with potential buying opportunities going up off the bottom if the sellers fail to hold.

Gold is sideways and range-bound ahead of tomorrow’s big news report, which tells me to stay patient for buying opportunities below the lows and selling-opportunities above the highs.

Knowing this, I need to wait for a breakout of the range and then looking for ways of buying low and selling higher until we see a successful 123-Breakout.

Euro is bearish with four legs lower, which always alerts me to watch for a trading-range.

Furthermore, if we do see a trading-range the plan is quite simple; buy the low, sell the high, avoid the middle and use the ‘2-Try Rule’ to fade the breakouts.
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Economic News:
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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Joseph James, SchoolOfTrade.com and United Business Servicing, Inc. are not registered investment or trading advisers. The services and content provided by SchoolOfTrade.com and United Business Servicing, Inc. are for educational purposes only, and should not be considered investment advice in any way. U.S. Government Required Disclaimer – Commodity Futures Trading Commission. Futures and Options trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with money you can’t afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results. cftc 4.41 These results are based on simulated or hypothetical performance results that have certain inherent limitations. Unlike the results shown in an actual performance record, these results do not represent actual trading. Also, because these trades have not actually been executed, these results may have under-or-over-compensated for the impact, if any, of certain market factors, such as liquidity. Simulated or hypothetical trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to these being shown.

Comments

reaper trader says:

Hi Joseph
Your Videos are the BEST !
Please help with one question – With stocks – if the price jumps past your stop / buy / sell order … you DON'T get stopped out and it can continue to run against you … Is this the same with FUTURES?

Thx again for your videos – You are truly a Master with Futures

10secondsrule says:

Thank you so much Joseph! It’s always the 1st thing in the morning I watch before work.

Joseph James says:

Why are four legs so important? Because it alerts me to start looking for either a trading-range or a flag pattern. Once I see that pattern on the chart, I know precisely where the best entries and exits will be from there.

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