Trading the “Rule of Three” | Crude Oil, Emini S&P, Nasdaq, Gold

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Markets got off to a fast start to begin the week, but with most of the movement happening before the US session began, I have to assume that buyers are still waiting on the next deep pullback to find their entries at key support levels…

Knowing this, I have my eyes on some key support levels for tomorrow, and I’m waiting on the “Rule of Three” to help me find the best set-up to trigger the entry – are you ready?
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Crude Oil is bullish into a trading-range this evening, telling me to look for buy set-ups underneath the range using a seller-failure pattern…

And since we just got a strong shot lower to finish today’s session, I’m going to wait for a more reliable “nested” failure set-up to trigger long going back up to re-test the highs on Tuesday.

E-Mini S&P is bullish with a flag pattern, which means we’re playing the “rule of three”, waiting for one of two possible entry set-ups using the bear channel.

The key, I believe, is this support trend-line coming up from below, which is likely where the bulls want to get back in long again, we just need the breakout-pullback to fail underneath the channel so we can buy it back up again.

Nasdaq is bullish into a narrow trading-range tonight, telling me to look for buy set-ups using seller-failure patterns below the range on Tuesday…

And don’t forget about the wide Hidden Channel, drawn off the two highs, that gives us key support for a deep pullback and a nice buy off the lows tomorrow morning.

Gold is bullish and rotating back and forth inside a range, and soon to become an expanding triangle, which makes the plan relatively simple…

I want to buy the low, sell the high, and avoid the middle, focusing on failure set-up and a target using the ‘pendulum swing’ on Tuesday morning.

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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

Dawn Raven says:

Two words: Repo operations. And enjoyed the vid thanks for the education.

Jerrell Hill says:

Keep up the good work 🙏🏾

Senuradj Shan says:

Sir. please give me MT5 indicator

Joseph James says:

The Rule of Three is a reliable way to time your entry into the pullback off a major high, but the real key is combining it with reliable support and resistance levels and the proper entry set-up, are you ready for this?

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