Overnight the NASDAQ futures formed an inverse head and shoulders pattern following Trumps tariff threats. This pattern is showing that buying has quickly entered back into the market and we may see a large short squeeze with a quick pop in price. The price target based on the pattern and overhead resistance is around 7430. As with all patterns nothing is...
**Market Structure** -A falling wedge has broken -Due to the price rise going into the wedge as well as the downward sloping nature of this wedge, that gives is a solidly bullish bias -The overall markets have been bullish and we could see the tide lifting all ships higher **Trading Tips** -A bearish pinbar has formed on the daily so we may see...
A major sell signal is potentially forming in the EURUSD -0.02% . A large bearish pennant has formed and a bearish pinbar is currently forming off of the top of this pattern. The pennant pattern is giving us our bias and the candlestick pattern is giving us our entry signal. If the daily candle closes bearishly then this could be a tradeable setup. I will update...
This morning I sold 160 strike naked puts for $1.06 credit each. These options have a 30 delta at the time. This is a neutral to bullish strategy. The idea behind this trade is a contrarian play into high implied volatility . The idea being that after such a massive selloff the bears will exhaust soon and we will see a pop in price and volatility will come out of...
This video discussed the large bullish weekly pinbar setup that has formed in light crude. I discussed the current market structure, trading tips and trade ideas. Notes from the video are posted below. **Current Market Structure** -Long term bullish trend -Price has stayed within bullish channel -Large bullish weekly candle from pullback off of key...
My accurate bearish call from last month played out nicely as price broke out of the pennant pattern and proceeded to drop to our first price target of $6,000. Price has since popped back up to retest the bottom of the pennant. This is the moment of truth for bitcoin on whether it can reverse it long term bearish slide or whether it will continue to drop and...
QQQ has been looking stretched as of recently which is being emphasized by the fact that it hasn't been able to push higher in the past few trading sessions. Any move lower could put a quick squeeze on retail long traders and quickly push price back down to the 171-170 region. If this happens I am looking to be a buyer on that weakness as the short/medium/long...
Price has sold off hard from the bearish price action analysis I did last week (those will be linked to this post). As I pointed out in my analysis last week, the bearish price action offers an opportunity to get short and once price drops to the 1215-1205 range we can switch from a short position to a neutral/short to then profit from the high implied...
Soybeans are offering a short premium opportunity as price perhaps starts making a bit of a floor. I have sold a straddle at 840 w/ 45 DTE for a maximum profit of $2500. A few things made this an attractive trade such as the high implied volatility and price having reached a key support level where I hope price stays buoyed while I run out the clock and collect...
The 1 year IVR in USO has reached 93%, and has reach 100% on the 90 day IVR. This is exactly when we want to begin selling premium. In this case I decided not to sell a straddle(selling both a put and a call), because I don't like the upside risk I would be taking on. With this trade, selling a put, we are both selling premium and getting...
For those of you already short or looking for a short entry, there is a new, bearish flag pattern forming. I think we could still see price pop from here considering the strong bullish move from the bottom of the flag, but as long as price stays contained within the flag we could see selling pressure re-enter and a break down of the flag setting up a price target...
The British Pound has had a wild ride in the last 24 hours with major volatility inducing events. That volatility has caused a downside break of the long running bullish trend, with a failed retake of the trend. Upon attempting to retake the channel price has failed to retake the trend support and has also formed a small bearish pin bar and continues to hug the...
In this video I talk about the potential of a setup in the key resistance area of 1.18 to 1.185 price zone if a bearish candlestick pattern forms in this area. This would off a very nice, with-the-trend, short selling setup.
In this video I talk about the bearish inside bar fake-out pattern that has formed on the daily charts in the gold futures market. I cover a short educational lesson on the important of market key support and resistance levels ahead of time. Finally I cover some potential entry / stop loss / profit taking levels for short sellers.
In this video I discuss, using a recent live trade, how dynamically managing trades is superior to the "set it and forget it" approach to stop loss and profit taking levels.
In this video I introduce you to the benefits of market and strategy diversification. I then cover a short strangle trade that I am currently in. I will begin posting more short premium options trades along with my current directional price action trades that I frequently post.
In this video I discuss a potential buying opportunity from key support.
An inside bar/fake-out setup formed in the EURCAD minor pair last week. These types of setups can be very powerful false break signals where large numbers of retail traders were tricked into going one direction and price immediately whips in the other direction, trapping these traders. That can provide strong movement in the other direction as these traders are...