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Opinions14 hours ago· 4 min read

China News is Noise: My Levels for Trading Next Week

Trump's comments on China and Taiwan are creating chop. Ignore the headlines and focus on these price action setups I'm stalking for the week ahead.

Last time we saw this kind of headline-driven chop was during those Iran uranium talks Ryan Cross covered. One minute the market is ripping on a rumor, the next it's nuking on a clarification. Trump saying 'we are doing well with China' while Beijing calls Taiwan a 'red line' is the exact kind of noise that wrecks new traders. While everyone else is guessing, I'm just watching the tape. Price is all you need.

TL;DR: The market is strong, but geopolitical headlines are designed to shake you out. I'm a buyer on dips into key support, specifically watching the $71,500 level on BTC and the 5280 area on ES futures. I'm fading the knee-jerk reactions.

My whole morning routine is just drawing lines on a chart. Forget the complex macro takes from guys like Alex Volkov; my edge comes from knowing exactly where the big orders are sitting. Here's what's on my whiteboard right now:

  • Bitcoin (BTC/USD): Major support at $71,500. This was the consolidation zone before this morning's rip. Below that, $69,000 is the line in the sand. Resistance is blue sky, but I'm watching for exhaustion around $75,000.
  • S&P 500 Futures (ES): The 5325 level is the ceiling for now. We've wicked above it but failed to close. The pivot to watch is 5280. A hold there is bullish. A break below opens up a test of 5250.
  • Gold (XAU/USD): Stuck in a range. Support at $2,150, resistance at $2,185. I'm not touching it until it picks a direction.

Patience. A proper breakout trading strategy isn't about chasing the first green candle that pops above resistance. That's how you get caught in a fakeout. I wait for two things: a high-volume break and a successful retest of the broken level as new support. It's basic stuff, but it's what separates profitable traders from the bag holders.

For anyone learning how to read candlestick patterns, look for a strong 4-hour or daily close above a key level, not just an intraday wick. I want to see a full-bodied candle showing conviction. If BTC closes a daily candle above $74,000, I'll be looking to long the first pullback to that level with a tight stop just below.

While crypto is on fire, I'm spotting a potential short setup brewing elsewhere. This is a classic RSI divergence strategy example on the NVDA 4-hour chart. The stock has been making higher highs all week, but the RSI(14) is printing lower highs, currently sitting around 68. This tells me momentum is weakening. It's not a sell signal on its own, but it's a huge warning sign. It also flies in the face of the AI narratives that Marcus Cole has been covering. The story might be bullish, but the price action is getting tired.

***

My biggest weakness, and I write about it in my journal all the time, is revenge trading after getting stopped out by a news spike. A random tweet or headline can nuke a perfect setup, and the temptation to jump right back in is immense. My thesis is invalidated if we see a daily close on the S&P 500 below the 5250 level. If that happens, I'm hands-off until the dust settles. No matter how good the setup looks, I will not trade against the primary trend after a major support break.

Headlines make you feel smart, but levels get you paid. I'm sticking to my levels.
— Jake Morrison

At the end of the day, I go where the setup is. The China news is just a catalyst for volatility, and volatility is opportunity if you're prepared. I've got my levels marked and my alerts set. Now we wait for the market to come to us. Am I right to fade the geopolitical noise as a pure price action trader, or is there a macro storm brewing that the charts haven't priced in yet?

BTCUSD Chart
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