February 21, 2012
- in Uncategorized by schooloftrade
Crude oil day trading strategy
Our day trading strategy for crude oil this morning takes
into account the fear of lost supply from Iran over the weekend and the short
term reaction is for price to rise. We are
looking for the buyers to fail and to sell these highs once we break below the PLOD
and the key levels of support which are propping up this price above 104.80
into account the fear of lost supply from Iran over the weekend and the short
term reaction is for price to rise. We are
looking for the buyers to fail and to sell these highs once we break below the PLOD
and the key levels of support which are propping up this price above 104.80
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| crude oil day trading strategy |
Our day trading strategy for crude always involves the
simple idea that we should fade the breakouts, meaning that we want to sell as
price rises to new higher-highs expecting that the fear will not last that long
and prices will come back down once the market realizes there isnt any long
term concerns.
simple idea that we should fade the breakouts, meaning that we want to sell as
price rises to new higher-highs expecting that the fear will not last that long
and prices will come back down once the market realizes there isnt any long
term concerns.
We use our trigger-zone tool this morning to find the
support levels below us moving from major swing lows to the most recent swing-high. We can see major support at 103.50 and 103.00
and we will use these for profit target and areas of support where we can buy pullbacks
using a slower timeframe such as 55range.
support levels below us moving from major swing lows to the most recent swing-high. We can see major support at 103.50 and 103.00
and we will use these for profit target and areas of support where we can buy pullbacks
using a slower timeframe such as 55range.
The faster 55 range chart confirms the levels of support and
resistance we will be using for our day trading strategy on crude oil futures. We use the trigger-zone tool to find the
levels of support below us and we are ready to sell when price moves below the PLOD.
resistance we will be using for our day trading strategy on crude oil futures. We use the trigger-zone tool to find the
levels of support below us and we are ready to sell when price moves below the PLOD.
We finalize our day trading strategy for crude
oil futures using our 34 range chart and we can see the inside trading day
above the PLOD and below PHOD so buy the lows and sell the highs of the range
we’re trading in first and then buy pullbacks with new higher-highs above PHOD and
sell retracements below PLOD. Remember to
avoid the middle and we are trading the 04-12 contract this morning.
