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76 Ticks Day Trading Gold Futures Crude Oil Euro Russell E-mini SchoolOfTrade.com
With lower volume in the month of August we need to plan our attack a little differently, and we used this plan of attack to earn our profits today.
Lower volume means less consistency with our price levels, and we saw that today on Gold Futures.
Did you see the 82.64 level on Crude Oil? We made almost EVERY tick with this simple price level today…check it out.
– Crude Oil Futures are trading in a sideways range above the 82.00 from the break into the bracket above late last week.
o My slower timeframe shows us sideways above 82.00 and we see a strong bullish flag pattern (bull flag)
o With this bull flag pattern we can identify the best day trading opportunities will be above 82.64 (above the flag) and below 81.38 (below the swing low below the flag)
o We also know that if we break below 80.64 we will be dropping into the bracket below us, so we need to look for the short side < 80.64
o My fast timeframe shows us 1-5 tick new higher highs, so the long side at the HOD looks to be pretty weak, so lets look for the short side at the highs.
We also now have defined a sideways trading range on the 4-range chart, which we didn’t see on the 34-range chart.
Knowing the sideways trading range I can now easily formulate my plan of attack.
o We use the bullflag candlestick pattern to plan our attack, and we can see different options for our entries on this 13-range chart, but we’re waiting to see what happens next.
We have an entry in the middle of the pattern that we would like to avoid, if we can get a better fill towards the upper portion of this flag pattern.
When looking for a reversal, we always want to be as close as possible to the highs or the lows of the wedge/bracket/Flag
1000am EST
– Low volume in these markets has caused us some serious concerns this morning
– We’ve taken 4 trades, and most of them have barely given us enough to beak even
– We noticed the dollar sitting in the middle
– We also noticed that this lack of volume is causing the dollar correlation to lack consistency
o With less volume, comes less consistency, and when we cant count on the dollar to give us direction, we REALLY need to be careful.
– We gave the gold futures a try, but the lack of volume, lack of speed, and ZERO follow through has made this market on the bottom of my trading list today
o Hopefully this price action will improve on gold as the week progresses; all we need is more TIME.
1100am EST
– Crude Oil tries for one more attempt to break the highs over 82.64 and fails, we are looking for a reversal trade short now.
– We entered short on crude @ 1115 after watching the breakout attempt FAIL.
– Another example of how simply reading the tape and watching the volume come into the market can give us some easy direction for our trades.
– Another winning day!
