Trade Deep Pullbacks with Small Stops | Crude Oil, Emini S&P, Nasdaq, Gold

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It might be a new week and a new month, but the strategy stays the same, and looking at the charts tonight I can see plenty of reliable trading opportunities setting-up for Tuesday’s trading…
One thing that stands out tonight, is that strong run higher at the opening-bell this morning, which didn’t give buyers many opportunities to participate…

And whenever I see a move like that, I know to expect a DEEP pullback to give the buyers another shot, but DEEP pullbacks come with some challenges, and I want to make sure you’re ready for that set-up tomorrow morning – are you with me? Let’s go…
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Crude Oil is bearish and sitting right on today’s low, which isn’t a very reliable place to start selling; I’d rather wait to sell at resistance instead…

One option is to wait for a bounce off the lows and get short into a buyer-failure above the moving-average…

But if price keeps pushing lower, I’m going to have no choice but to get aggressive, and I’ll be looking for a 2-Try Trap to get short above a recent swing-high.

E-Mini S&P is bullish into a range, which tells me to buy the low, sell the high, and avoid the middle on Tuesday morning…

But the BIG clue on the Emini is that blast higher at the opening-bell this morning, which left a lot of buyers waiting for the next deep pullback…

And remember, deep pullbacks might give us great risk-reward ratios, but they come at a price, so we need to time the entry properly with the correct pattern…

Nasdaq is bullish into a trading-range, telling me to look for buying opportunities using seller-failure patterns below the range low tomorrow morning…

But just like the S&P, the Nasdaq also had a strong run at the opening-bell, which reminds me to stay patient to buy the deep pullback with the “nested” entry pattern…

Gold is bearish into a trading-range, which tells me to sell the high, buy the low, and avoid the middle of the range tomorrow morning…

And since the sellers are rotating higher off today’s low, I’d like to see the buyers take a swing at the reversal before I look for the opportunity to sell into their stops for a re-test of the low.
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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.
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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

Krag Ferris says:

If you do Monthly payments I'm going to be your next new victim… I mean student.

Elle says:

A great vid…thanks again for all you help and knowledge 🙂

Dita Tur says:

moving average? 20?10? 50? 200? thank you, you are the best

David Nwankwo says:

Hi
How could be that you may connect me please
I want to be trading with you

Joseph James says:

Deep pullbacks give us a great risk-reward ratio, but that also comes at the cost of momentum, so before we buy the deep pullback we need to time the entry with a reliable signal. Are you with me?

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