April 25, 2012
- in Uncategorized by schooloftrade
Day trading strategy Crude Oil
Crude Oil futures trading in abear price channel and bear price wedge has formed in the short term. The best way to trade a price wedge is to
sell the highs, buy the lows, avoid the middles and fade-the-breakouts. So as price rises to the highs I’m waiting
for the buyers to fail and then ill sell the highs. As price moves lower I’m waiting for the
sellers to fail so we can buy the lows. Furthermore,
we want to try our best to avoid re-entering trades in the middle of the price
wedge.
HEADS-UP: the PLOD has not been tested today, and weJUST saw the buyers fail above the PHOD so we can assume the buyers failing
will give the sellers the opportunity to the PLOD. We will buy the PLOD as support first and
then with new lower-lows below PLOD we sell retracements and then remember to
look for the fake-out breakout below the PLOD and we will BUY back above the PLOD
if the sellers fail.
Our faster 34-range chart on CrudeOil shows us the more recent and much narrower price wedge in the middle of the
larger price wedge. This short term price
wedge is the most important thing to us RIGHT NOW. We want to buy the lows/support and sell the
highs/resistance of this price wedge, and remember to try and avoid the middle.
News from Iran this morning pushed prices lower,
and the buyers failed above the PHOD so we sold the highs in the early part of
the US Session today.
