October 5, 2011
- in Uncategorized by schooloftrade
Confident in your trade plan? Gold futures tested patience today still hit our goal
Mini-Russell Futures trading at the highs of the previous day’s trading range, just above the PHOD. If we fail above the PHOD we want to sell this price down to the price wedge lows. If we keep moving higher above the PHOD we then look to buy a pullback. Final target for the pullback will be 657.1 the BMT.
845am EST
Gold futures moves to the highs of the trading range and we tried selling the trading range highs with no success. Too sloppy, too oversold, and the price action was clearly around the OPEN at 26.9
Now we need to be patient and wait for either new highs to then sell those highs, or new lows so we can get a new opportunity to get short below 21.1
905am EST
Euro currency futures are trading in the middle of the trading range. We have a price wedge, inside day, and bull price channel.
We want to buy the lows/support of the trading range, sell the highs of the trading range and avoid the middle.
Right now we don’t have any EASY OBVIOUS trades to take, so we sit on hands.
If price rises I’m selling the PHOD and the highs of the trading range.
If price moves higher than the PHOD we then buy pullbacks after we look for the fake-out breakout.
If price falls I’m buying the lows of the trading range and the price channel lows. I will buy 1.3256 the trading range lows and then if price moves lower we sell retracements.
950am EST
Mini-Russell Futures are at the highs of the price wedge and failed above the PHOD so this is an easy short off the highs after the failure.
1005am EST
Dollar Index (DX) is now making new lows so we can use that correlation to be BUYERS on the markets we trade most.
Mini-Russell Futures is breaking above the PHOD so lets look at buying, however, we have the highs of the price wedge to worry about as major resistance, so lets be careful.
I will buy the Mini-Russell Futures when we break above the major resistance of 649.8 which is above the PHOD and the price wedge highs.
If we FAIL above those highs, we then consider that to be a strong clue, and we then look to sell.
1030am EST
Crude oil futures inventories come our lower than expected with demand much lower as well, so this is BEARISH on crude oil futures, we sold the trading range highs according to our plan.
1100am EST
Market personality is changing quickly after 11am, so let’s be patient and look for the highest percentage trades this morning from this point forward.
Questions from our trade room today:
Price wedge, does the angle of the price wedge matter?
Yes! Bearish price wedge, bullish price wedge, or sideways price wedge.
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Which timeframes should a new trader begin with?
Your trade plan already shows you EXACTLY what timeframe to use and how to use it.
Members, send me your custom trade plan worksheet for me to send YOU a tailor-fitted trade plan.
I suggest the 13 and 21 range charts for beginners.
Once you get some experience then move to the faster 8 and 4 range or move to a slower timeframe and take position trades or swing trades on the 34/55/89 charts.
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Do we trade the Aussie (6A) or the CAD (6C) when we trade?
YES! They are both excellent markets, I don’t have much more room in this trade room, however, this method works on anything.
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How do range charts compare to minute charts?
They do not. They use trading range, whereas time charts use time.
Not going to be EXACT, it will be roughly…
4range = 30sec – 1min
13range = 1-2 min
21range = 3-5 min
34range = 5-8 min
89range = 10 min
13range = 1-2 min
21range = 3-5 min
34range = 5-8 min
89range = 10 min
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I very rarely use a DAILY chart. Why? Because it’s a little too slow for an intra-day trader.
I use the 89range (10min) as my slower timeframe (anchor chart)
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Which markets in the afternoon?
E-mini’s until they close (Mini-Russell Futures)
Crude oil and Gold will be closing too early, so beware of those.
Euro currency futures will also be too slow in the afternoon.
Aussie currency
Yen currency
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If you need more practice, don’t force trades in SLOW times the day.
Use market replay. Rewind the tape and re-trade a different day in the last week.
End of the year, end of the summer, end of Q1, are times when its better to NOT trade TODAY’s price action, and use market replay.
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Price Alert Indicator: right click on the chart, in the list of indicators select PRICE ALERT from the list on the left side.
