October 14, 2011
- in Uncategorized by schooloftrade
Inside Day gives easy clues day trading gold futures; another profitable week
dont forget! our Automated Trading Systems let your COMPUTER do all the trading for you!
815am EST
Dollar index is trading around the PLOD with a slightly bearish trend on the 13range chart. This gives us clues as to the directional bias on the markets we trade.
Dollar index bearish = everything else bullish, so looking for buying opportunities assuming the dollar index keeps making new lower-lows.
830am EST
Retail sales news come out better than expected, which SHOULD be dollar index bullish, and that means bullish on crude oil futures because its signaling a strong recovery.
We’ve defined a sell zone on Gold futures at 1691.0 so buying pullbacks up to 1691 and then looking to sell the highs of the price wedge using this simple ab=cd pattern.
930am EST
The dollar index is now at the support level we spoke about at 800am so now we expect the dollar index to move back higher, which will give us some selling opportunities on the markets we trade.
955am EST
We wait patiently for better market personality after the 10am news this morning.
We have a solid plan, however, the price action this morning has been less than desirable, making it hard for us to trade so far today.
Lets plan our attack on the markets this morning again…
Crude oil is above the resistance at 86.60 and appears to be stalling at these new higher-highs. If crude falls back below the 86.60 we will look for selling opportunities. If crude oil futures stays above this resistance (use it as support now) then we expect price to move higher into the reversal point of 88.00. we will buy pullback up to the 88.00 if buyers can hold onto this support 86.60
1000am EST
Russell is similar to crude oil futures in the same spot, above the resistance overhead and stalling out. Will it go higher? If so we buy pullback up to the reversal point of 714.0 and then sell the reversal. If price drops below the 703.8 we assume the buyers have failed and we will re-enter short below the trend line at the price wedge highs.
1045am EST
Feels like the weekend has already started!
Momentum going oversold to overbought very quickly, which tells me the personality is NOT going to be giving me BIG RUNNERS today.
After 1045am on a Friday we need to be thinking END OF THE MORNING.
Questions from our trade room
Can the POT help the Dollar index Correlation?
– Yes! Because when we have LOW volume the correlation does not work as well.
– Pace of Tape Indicator (POT) measures the speed of the orders coming into the market.
o Use a POT indicator for the Dollar index and when the SPEED is higher, we know the dollar index correlation will be consistent.
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What if you don’t use a stoploss and your trade is losing money below where your stop WOULD have been? What do you do?
Four-Letter Words that Day traders should NEVER say…
– HOPE
– PRAY
– FEAR
Scenario 1 = it turns into a winner, we make money, and we are conditioned to do it AGAIN.
Scenario 2 = you cut your loss and take your loss. This time the PAIN of a LOSS will condition you to PLACE YOUR STOP NEXT TIME!!!
Scenario 3 = it’s a HUGE loss b/c you let it run and didn’t cut your losses. Double whammy b/c it costs you a large portion of your account AND it robs you of your confidence.
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Dollar index is most active during the US Session 930-415pm
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How do they know where our stops are, how do they run the stops?
– They know where they are b/c they are just like YOU!!!
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What helped me learn?
I made a lot of mistakes and always tried to learn from them
Sociology (not psychology or finance) classes really prepared me for the HUMAN aspect of being a trader.
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Step 1: find a price channel
Step 2: define the a, b, and c points
Step 3: draw your TRIGGER ZONES from A to B
– The goal is to get C as close to the HIGH of the trigger zone
– If it’s near the high of the TZ this is the IDEAL pattern.
