95 Ticks using Trend Lines Wedge Chart Patterns Define Trading Opportunities

Today we saw almost exactly what we expected…

– Slow start to the day

– Sideways markets

– Our favorite markets waiting for more direction

So how did we trade this market so well? Be sure to watch tonight’s newsletter video and learn along with us

830am EST

Crude Oil Futures trading sideways at 78.00

– The slow timeframe chart shows a sideways wedge pattern

o We are trading in the middle of this wedge pattern
o We need to avoid trading the middle
o So we will wait for the price to test the outside edges of the wedge.

 Look for short entries around 79.30, and look for the long entries around 77.20

– The Fast timeframe shows us trading at the low of day, and looks to be moving pretty well to the downside.

o But wait! We looked at the bigger picture on the fast chart, and it shows a different story
o He fast chart shows a sideways trading range from last Friday, and just recently have we tried to break the lows, so this is NOT a trending market, it just LOOKED that way when we first open the chart.

o We noticed a 13-range trade setting up for a breaker short, waiting for price to break 78.00 for this entry short.

915am EST

– Gold Futures are also trading sideways

o Slow timeframe shows us a sideways wedge pattern, and we are trading right in the middle, just like we saw on crude oil futures.
o The fast timeframe confirms this very sideways market

 Trading in a wedge pattern
 We are trading at the open of the day, which is also the middle of the bracket
 Speed is very slow, its less than 100 on the pace of tape indicator

o All of this tells us to wait patiently for gold to find its direction for the day.

1000am EST

Russell Futures are trading sideways at the highs of the previous day’s trading range

– The slower timeframe shows us trapped in transition between the bracket at the bottom of the chart and the sideways trading range at the top of the chart
– The fast timeframe shows a very concerning picture of the market today
– We notice that trading range today is ¼ of the trading range from last Friday
– Narrower trading ranges mean weaker price action, so we take this as a sign to be extra careful looking for patterns on the Russell futures until we see a wider trading range.

1045am EST

– Crude Oil trading sideways around the big round number of 79.00, so we need to wait for the scalp trades.

o We are waiting for a breaker short below 78.00 at this time.

– Gold Futures just made us some money on the 21-range short trade

o We’re looking for a re-entry below 79.6 (today’s low of day) to complete the mission down to 72.8

– Russell Futures are continuing to give us opportunities selling the highs of the channel on the fast chart

o Sloppy price action, slow speed, and sideways markets on the Russell have made our job getting INTO the trades more difficult.

– We are seeing signs of the ‘dead zone’

o More pronounced during the summer months of July and August because volume is much lower

 After the US session news, and BEFORE 1130am EST, which is the Euro Close for the day.
 Volume slows down without any news to spark price movement, and so we need to be careful.

– Euro Currency Futures have been quiet all day today, trading at the highs of its trading range

o We noticed it just recently broke the wedge pattern that was containing price movement
o Now we’re looking for the next opportunity to take a short trade because we know with a sideways market the best option is to sell the highs.