Breakout Trading on Crude Oil Wedge Pattern & Reversal Trade 21-Range Chart

We earned over 95 ticks before 10:00am EST, and then we took a loss on the reversal off the high of day on crude oil.

We gave almost ALL of the profit back, but as always, we made the money again on the very next trade!

You’ve gotta see this one to believe it! Click below to watch today’s video…

– Crude Oil futures are trading sideways as we roll forward to the 09-10 contract

o Contract rollover on crude oil futures comes each month, it’s the only one of futures markets that will rollover monthly
o Slow timeframe chart shows a sideways wedge pattern, which is a sign of a consolidating and choppy market
o Fast timeframe

1000am EST

– We took our first 3 trades today on crude oil future

o Breaker long for 15 ticks
o Breaker long for 40 ticks
o Sold the highs after that move for a 2-step short for another 40 ticks
o Just below 100 ticks of profit before 10am est and only on crude oil today

– Gold Futures are breaking new lows, but slowly trading sideways in the process

o Slow timeframe shows us below the 1200 where we’ve been waiting for, but we’re trading sideways after that move down
o Fast timeframe shows gold futures trading at the low of day, and it makes it LOOK like the trend down has been a lot more aggressive than we see on the slower timeframe.

– 1100am EST

– Euro futures are sitting quietly below the big round number of 1.3000

o We expect this big round number to be one of the most important
o Slow timeframe chart shows an trending up market
o Fast timeframe chart shows a sideways market right in the middle of the most recent trading range

 We need to wait for the euro to trade away from the middle, test the high or the low of the range, and we will look for a trade entry.

– Russell Futures trading at the big round number of 600.0

o Slow timeframe shows a sideways trading range
o Fast timeframe shows a strong downtrend

Day trading Patterns:

Gold Futures:

– We’ve made a nice move down on gold, making it below the 1200 level, now lets look to buy the rise back to the upside of where the drop began.

o Entry long above 83.0
o First target of 85.5 will be the previous low of day
o Our second target of 88.5 is the next swing high above that level
o And our final target of 93.0 will be all the way back up to where this drop began.

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– Crude Oil futures:

 -Made new highs today, we’re looking to SELL the HIGHS on this 2-step short reversal pattern on our slower timeframes

o Entry short below 29, this is the trigger line on my 34-range chart, so this DYNAMIC support level may be lower by the time the trade triggers, so keep an eye on the 34 range trigger line, its at 28 at this time.
o First target of 77.10 is the big round number
o Second target of 95 is a little too tight for my liking, but we need something around the previous day’s open
o Third and final target is all the way down at the open of the day, right back to where we started.