February 28, 2012
- in Uncategorized by schooloftrade
day trading strategy trading crude oil
our day trading strategy trading crude oil this morning also
uses multiple timeframes and uses this 89 range chart with 12 months of data to
locate this bull price channel and we can see price trading right on top of the
price channel highs. We know from
experience that this type of ‘location’ on the chart may results in very
sideways chop and slop, so look to buy the lows and sell the highs of the range
from Monday, using the PHOD and the PLOD as our biggest clues for short term
direction in our trades.
uses multiple timeframes and uses this 89 range chart with 12 months of data to
locate this bull price channel and we can see price trading right on top of the
price channel highs. We know from
experience that this type of ‘location’ on the chart may results in very
sideways chop and slop, so look to buy the lows and sell the highs of the range
from Monday, using the PHOD and the PLOD as our biggest clues for short term
direction in our trades.
We can easily see more details for our day trading strategy when
we move to the faster 55-range chart on the CRUDE 04-12 contract. Notice the short term bull price channel, the
inside day above the PLOD and below the PHOD and the support levels below the
current trading range which will act as excellent buying locations if price
pulls back off these highs a little. The
bull price channel tells me to buy as price pulls back so we’re looking for
buying opportunities at levels such as 107.27, 107.15. 106.60, 105.45, 104.50, 104.61,
AND 102.30 and of course if price moves lower below those levels we then sell retracements
on the failure at these key levels of support.
we move to the faster 55-range chart on the CRUDE 04-12 contract. Notice the short term bull price channel, the
inside day above the PLOD and below the PHOD and the support levels below the
current trading range which will act as excellent buying locations if price
pulls back off these highs a little. The
bull price channel tells me to buy as price pulls back so we’re looking for
buying opportunities at levels such as 107.27, 107.15. 106.60, 105.45, 104.50, 104.61,
AND 102.30 and of course if price moves lower below those levels we then sell retracements
on the failure at these key levels of support.
Looking at the much faster 34 range chart we can easily see
our day trading strategy come to life this morning with a price wedge, inside
trading day, and trigger-zone levels of support below us. First the price wedge is most important so
fade the new highs and lows trying to buy as price falls to new lower-lows and
sell as price makes new higher-highs. Of
course, if sellers are strong and they push below support levels we will then
look to sell retracements and vice versa for the buyers pushing through levels
of resistance.
our day trading strategy come to life this morning with a price wedge, inside
trading day, and trigger-zone levels of support below us. First the price wedge is most important so
fade the new highs and lows trying to buy as price falls to new lower-lows and
sell as price makes new higher-highs. Of
course, if sellers are strong and they push below support levels we will then
look to sell retracements and vice versa for the buyers pushing through levels
of resistance.
I want to sell the price wedge highs, the PHOD and
the 110.0 resistance as price rises and buy the price wedge lows, PLOD, and trigger-zone
support as price falls. Remember to
avoid the middle of the price wedge if possible because it will be sloppy up
and down.
The faster 21 range chart shows us a new bear price channel so look to buy the lows of the channel at support.
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| crude oil day trading strategy |
