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The Market Gives us clues today…
830am EST

– Dollar Index Futures trading off their highs from last week

o Multiple levels of support and resistance

o Double-tops & bottoms keeping price propped up just below its lows.

o Pace of Tape is < 100, so very slow

 RED Pace of tape = very slow market = beware!

o Average true range is at its lower levels from last week, so we may need to wait for this to improve.

950am EST

– Crude Oil Futures, we noticed that the price action was so choppy at the lows, the current 13-range chart was no longer a good fit.

o Slowed it down to a 34-range chart to remove a lot of the ‘noise’ and now it’s a lot easier to use the chart.

o Average true range is increasing, off its lows of the prev week, and heading to the highest level from late last week.

 Tells us that a sideways market with widening range is going to be perfect for our 2-step reversal patterns today~!

 Identify the best possible spots, and look for those 2-step patterns

o Sideways markets = 2-step pattern

 be aggressive with taking profit

 with a rising ATR, this means we may get some nice moves INSIDE of the sideways range

– 1015am EST

o Crude Oil futures are trading in a WIDE sideways range

o We’re looking for the option to sell the highs, or buy the lows, but the market has us concerned

o All the trigger lines are the same, flat, price level

o Sideways markets = flat trigger lines

 When they’re ALL flat and the SAME price, that means BE CAREFUL, this is a SIDEWAYS sideways market!

1030AM est

– Euro futures we need to get above the 2415 level to get into our DX-Long

o Average true range is still pretty low

o Speed of the tape (pace of tape) is all RED all morning

o We’re still seeing low volume this morning, most likely because of the European and Canadian holidays today,

1150AM EST

– We first saw crude oil futures contracts with a wide sideways range, and a rising (widening) average true range

o Use our 2-step patterns to buy the lows, and sell the highs of this sideways range

o WIDE ATR made us confident in taking trades within the sideways chop.

2 trades today, 2 Winners

+41 ticks, $410usd

Only 4 contracts needed to achieve this today!

See you tomorrow @ 745am EST for the live trade room session!