April 23, 2012
- in Uncategorized by schooloftrade
Crude Oil day trading strategy
We can see bull price channel on
the 55 range chart on Crude Oil and this price channel has given us the advanced
price-structures support at 101.85. We
can also see a short term bull price wedge and trading below the PLOD so this
is an outside trading day. We know the
heat map on the dollar index says to sell retracements with new lower-lows this
morning (for now) and when we look at the Crude Oil chart we see that selling into
the lows will be a challenge. We don’t want
to sell the price wedge lows, we want to BUY the price wedge lows on any price
wedge we see.
the 55 range chart on Crude Oil and this price channel has given us the advanced
price-structures support at 101.85. We
can also see a short term bull price wedge and trading below the PLOD so this
is an outside trading day. We know the
heat map on the dollar index says to sell retracements with new lower-lows this
morning (for now) and when we look at the Crude Oil chart we see that selling into
the lows will be a challenge. We don’t want
to sell the price wedge lows, we want to BUY the price wedge lows on any price
wedge we see.
As price rises I’m buying the lows of the price
wedge with pullbacks and 2-step pattern off these lows. And if price rises above the PLOD I will buy
more as the sellers have failed. If prices
drop lower on Crude Oil we need to beware selling into the lows, so sell retracements
below the support at 102.13 and then be sure to take profit at the 101.85 advanced
price-structures support. At the lows
around 101.85 it will be tough to sell, so stick to the plan and wait for the
sellers to fail and buy the lows at 101.50-101.85 range.
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| Crude Oil day trading strategy |
