August 29, 2011
- in Uncategorized by schooloftrade
Price Wedges make easy trading opportunity for Patient Traders
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The James’ Report: Professional Resources for Professional Traders
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Today’s Economic News:
Looking at the news this morning, this is the final week of the Summer, leading into the Labor Day Holiday ahead of us this coming weekend. Like most of the summer, we need to simply stay patient in the first few hours of the morning session, and then be disciplined towards the end not to over-trade when the markets slow down going into 1130am.
This morning we start with 830am news on Personal Income which will hopefully give us some early morning trading opportunities. We then go through the US Market Open to 10:00am Pending Home Sales, followed by 10:30 Dallas Fed Manufacturing Index, both of which will be market-movers.
We will see volume through 1045am today, then we will be watching volume and speed closely looking clues that market personality is changing, thus telling us to sit on hands and wait for better times to trade.
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Looking at the Charts:
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Gold Futures are trading in a price wedge this morning on our 89range chart.
– Price Wedge
– Bull Channel
– Sideways Range
Our 89range chart shows us the major support levels below us, and gives us easy profit targets if price is to keep rising.
Bull Channel says to buy pullbacks with new highs, and to buy at support as price falls.
The price wedge tells us to buy the lows and sell the highs of the wedge. Avoid the middle, and beware the fake-out breakout from the wedge.
Dont forget! Monday morning you dont use SUNDAY’s trading range, we use Friday’s.
We use the 34range chart on Gold to get a more accurate view of what’s REALLY going on today.
– Inside Day
– Price Wedge (narrow)
– Trading at the OPEN
– Sideways Range
Inside Day and Price wedge tell me to sell as price rises and to buy as price falls.
I want to sell as price rises until we break above the 1828.0 area and then buying pullbacks with new higher highs.
I want to buy as price falls and then selling retracements with new lows below 1808.7.
I want to avoid the middle of the range around 1820.0 area.
I want to sell the PHOD as resistance, and then buy a pullback with new highs above the PHOD.
The same is true (but opposite) for the PLOD.
Avoid the BMT 1809.8 because it will be sloppy on ANY timeframe.
Crude Oil Futures:
– Price Wedge, recently broken with new highs
– Bull Price Channel
– Sideways Range
Price Wedge reminds us to sell as price rises, and to buy as price falls.
Sideways Range gives me easy levels overhead to sell as major resistance, and easy levels of support below us to buy.
Bull Channel reminds me to buy pullbacks with new higher highs, however, the personality on this market today makes buying breakouts higher risk (wedge)
Russell futures:
– Price wedge
– Bull channel
– OUTSIDE DAY above the PHOD
My plan on the russell will be to use the bull channel so buying pullbacks with new higher highs, being sure that at major resistance we take profit and look to sell at major resistance first.
As price rises im selling at the 89range major resistance levels first, and then with new higher highs then buying pullbacks.
If price falls im using the bull channel as my guide so im buying at support as price falls first, and then with new lower lows i then start selling retracements.
If price falls back below the PHOD 701.8 we then have sellers in charge so im selling retracements below the PHOD which is because it becomes an INSIDE DAY.
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