26 Ticks & Wave Indicator LIVE Today!

SchoolofTrade.com Daily Commentary 03-09-10

We opened our charts today and as usual, the market was trying to tell us something…

– 820am Gold moving down, but very sideways

– Concerned about the 1100-1115 area on Gold, very choppy from last week

– Crude Oil 80.00 area is also very choppy

– 845am Crude Oil Pace of Tape Slowed as price rises for a 2-step long pattern

o Then increases speed when price falls again

o Short term market bias is the short side

– 900am Good Speed, but sideways, not many patterns

– Dollar is flat, wide sideways range, multiple days

o Confirms the flat market on Gold & Crude Oil

– 10:30am Dollar rests on Prev High of Day (support)

o Overhead resistance on the Gold, Crude Oil, Euro

The market told us to be careful because we had flat price action, lack of follow through the on the first moves of the day, and the dollar gave us issues with support and resistance.

We were able to grab a few trades early in the morning, but by 10am the price had slowed down tremendously and we were trying to keep focused on the very best patterns along with SPEED and SIZE on the tape.

As price slowed down we also took some time to learn more about the Wave Indicator, which is one of our oldest tools of the trade, and its STILL a very powerful trading tool.

We spoke about the different ways to use this indicator, but we spent more time speaking about how VOLUME and the SPEED OF THE TAPE play into buying pullbacks or staying away from reversals.

Volume / Speed is the most important thing in identifying the difference between a pullback and a reversal, and we discovered the many ways to avoid getting caught up in this reversal.

Make sure you keep an eye out for a new video tomorrow that will discuss this very technique…