October 15, 2012
- in Uncategorized by schooloftrade
Morning Mini-Russell Prep:
Heat Map
Review:
Market
personality is bullish 0.4% so we are looking for the high-percentage-trades this
morning.
personality is bullish 0.4% so we are looking for the high-percentage-trades this
morning.
Overnight
Highs & Lows:
Highs & Lows:
Buyers failedat the overnight highs and the sellers never re-tested the overnight lows. This is considered a range-bound market so we
sell-the-high at resistance and buy-the-lows at support
Inside or
Outside Day?
Outside Day?
We are
transitioning from inside to outside day right on top of the PLOD. This means that we’re looking short if price
makes a new lower-lows and/or long if price makes a new higher-highs.
transitioning from inside to outside day right on top of the PLOD. This means that we’re looking short if price
makes a new lower-lows and/or long if price makes a new higher-highs.
Find the price-structures: · Trigger-zone is resistance starting
at 825.0
at 825.0
· AB=CD Pattern is bullish at 815.0 and
807.0 support.
807.0 support.
· Price-wedge is not on this 89range
chart.
chart.
· Price-channel is bearish in the short
term and bullish in the long term.
term and bullish in the long term.
· Zigzag needs to be a bearish AB=CD
Pattern and we do NOT have that on this 89range.
Pattern and we do NOT have that on this 89range.
· Sideways Trading Ranges is from 834.0
down to 812.7
down to 812.7
· Double-top and Double-bottom not on
this chart
this chart
Where
will a reversal be likely today?
will a reversal be likely today?
A price-reversal
is most likely as price falls at the lows of the bear price-channel and the
815.0 AB=CD Pattern support. If price
rises higher a price-reversal is likely around the 825.0 trigger-zone resistance,
the PHOD 830.8 and the range highs at 834.0
is most likely as price falls at the lows of the bear price-channel and the
815.0 AB=CD Pattern support. If price
rises higher a price-reversal is likely around the 825.0 trigger-zone resistance,
the PHOD 830.8 and the range highs at 834.0
What isour trading plan for today?
It’s a Monday so we’re staying patient waiting for the market
personality to tell us when to enter a trade.
We use the bear price-channel structure to tell us WHERE to enter a
trade.
personality to tell us when to enter a trade.
We use the bear price-channel structure to tell us WHERE to enter a
trade.
As price moves lower we will sell retracements with wave-pattern-short
down to the price-channel lows, at which point we will look for the sellers to
fail and we will buy-the-lows at support of the price-channel. We also have 815.0 major support from the AB=CD
Pattern so we want to buy as price falls to the lows.
down to the price-channel lows, at which point we will look for the sellers to
fail and we will buy-the-lows at support of the price-channel. We also have 815.0 major support from the AB=CD
Pattern so we want to buy as price falls to the lows.
If price keeps moving lower, see Crude Oil today, we will
sell short below 811.0 which is the high of the major trigger-zone below
us. Look for 807.0 AB=CD Pattern to be a
profit-target on the short.
sell short below 811.0 which is the high of the major trigger-zone below
us. Look for 807.0 AB=CD Pattern to be a
profit-target on the short.
Remember that when we trade around the PHOD and PLOD we are
looking for the high-percentage-trades. If
the sellers fail below the PLOD we want to buy the PLOD when the price comes
back above it.
looking for the high-percentage-trades. If
the sellers fail below the PLOD we want to buy the PLOD when the price comes
back above it.
