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21 Ticks Day Trading Options Expiration Mini Russell and Crude Oil Futures
– Slower timeframe shows us breaking below the trading range from yesterday
– With this trading range below us, and the range above us, we know the following
o Sell below 74.00, and buy above 72.61, and then
o in the bracket above us, we will sell the highs of 76.82, and buy the lows of 74.00
– we notice a nice bearish channel on the fast timeframe, and price is trading in the middle of this channel at the OPEN
– we have some important things to consider:
o at the highs of the trading below 74.00, so I can look to sell these highs
o im in the middle of the bearish channel, so be careful trading the middle
o im also in the middle of the bearish wedge pattern, so again we need to be careful not to get into trouble in the middle.
– Looking a little closer using the 8-range chart we get another good look at some price action that continues to concern us today
o We see very choppy ‘hammer’ candlestick pattern
930am EST
Euro made a nice move down overnight last night, and now we’ve settled on the lows and big round number ofg 1.2700.
We need to define the sideways trading range, and we are going to buy the lows and sell the highs of this range.
Buy above 1.2700, and sell below the 1.2684
1030am EST
– Crude Oil futures are trading sideways now at 74.00
– We took a nice 2-step reversal off the highs of the trading range of 74.20, but we couldn’t get the price to break below 74.00, so here we sit…waiting.
– Both the 4range and 13range charts show sideways and very slow, so we need to wait for the break to the highs, lows, or breakout
– The Mini Russell gave us 3 good patterns, but none of them could trigger according to our rules
o The breaker short never triggered
o The wave short never triggered,
o The 2-step long could not be taken because we had overhead resistance
– And now the mini Russell sits sideways in a very narrow range within the sideways range we’ve already defined.
Gold has been trading slow and sideways all day today
The 21-range chart shows us above the lows, so we cant buy the lows at this point, and we are now inside the wedge above those lows, so we are concerned this market is going to have a hard time breaking out with such low volume this time of the day, month, etc.
We also see the 4range chart is trading sideways, and the SPEED of the market on the pace of tape indicator is less than 100.
We want to see much better speed, and remember, we need CONSISTENCY in that speed rising.
We’re testing the lows on the mini Russell, and when we test the lows we always look for a reversal pattern to buy the lows of 603.5
We know to be buyers above 602.0, so let’s look for an entry above 605.0, and due to the trend line overhead
