August 15, 2011
- in Uncategorized by schooloftrade
3 Clues day trading crude oil made it easy to hit our daily profit goal
Today is a summer Monday so get in early, be selective and patient as this week opens up and then watch the clock after 11am for the volume slowing down ahead of lunch.
Monday’s are good for the Golden Lunch, but not in the summertime.
Crude Oil Futures:
– 89range chart shows us a bull price channel so let’s buy pullbacks with new higher highs and buy at support when price falls.
– We have major resistance overhead at the highs of the major bear channel, so keep an eye on those highs as places to avoid buying and look to either sit on hands or sell.
– Above 87.38 beware the long side because we are at the highs of the bear channel, looking to sell these highs.
– Inside day tells me to sell the highs, buy the lows, avoid the middles, and avoid the fake-out breakouts
– Inside day means we should not get the big explosive moves until we break above the PHOD from Friday or below the PLOD from Friday. (Remember that Monday’s we use Friday’s HOD/LOD, not Sunday’s)
– Price Wedge is very clear on the 34range, so buy the lows of 84.00-83.33 and sell the highs of 86.35-87.37 of the wedge
– Inside day and a price wedge, this tells us to sell the highs and buy the lows.
– Short term bear channel will be another opportunity to use for trading this morning, however, keep an eye on the long term bull channel as the most important levels to watch today.
Our plan of attack on crude oil:
– Inside day tells us to buy the lows as price falls and sell the highs as price rises.
– Short term bear channel tells me to look at the short side as the higher % side.
– The bull price channel (89r) tells me to buy the lows and sell the highs of the channel as the most important levels.
– If price breaks below the PLOD 84.00 we become OUTSIDE day and we then start looking for selling opportunities
– If we break above the PHOD 87.37 we then look for buying opportunities as it turns into an outside day.
Right now crude oil is right in the middle of the trading range 85.50 and we need to wait for the highs or the lows to be tested.
Sell 85.85 if price rises, and buy 84.40 if price falls.
The Euro Futures are trading in a wide price wedge with easy levels to find overhead so sell the highs as price rises.
If price goes through the overhead resistance then we can consider buying a pullback with he profit target the next level of resistance overhead.
925am est
We have a slow personality this morning across the board.
Now we’re waiting for the US markets to open up and give us something to trade with this morning.
Mini Russell Futures are trading in a bull price channel which means we want to buy pullbacks with new higher highs
We also need to remember not to buy into the highs of the channel.
Buy the channel lows as support, and always look to buy at support as price falls.
1015am est
We see new higher highs so we buy a pullback on crude oil.
The wave long will not break the recent swing high and I missed my final profit target.
Now we recall this is an INSIDE DAY so we know the breakouts are going to be weaker than an OUTSIDE day.
I should have taken profit conservatively
1045am est
We see crude oil fails to break new highs above the PHOD from Friday.
This is a bearish sentiment signal, so look to sell new lows with retracements.
1100am
Price Action is very sloppy without much confidence after seeing this market roll around for a few hours this morning.
Now we open the floor for questions
We have members-only training in 25 minutes.
