July 5, 2011
- in Uncategorized by schooloftrade
Patiently waited for over 170 ticks of profit, back in the rhythm of our trading after Holiday
My main focus after a long weekend, after an extended period of time away from my charts, away from my trading is to get back into the rhythm of my day, my routine, my comfort level back.
900am est
We review the dollar index and our two main focuses are the 89range and the 13range charts for two reasons:
– We need the most important levels of support and resistance
– We need to know the short term trend
We can easily find the most important levels from the 89range chart to use with our negative correlation on the dollar, and then we use the 13range chart to see the SHORT TERM TREND, which is the most important for intra-day (day) traders.
How do we know when the market is flat and sideways? The trigger line is flat, so there is no trend, a sideways/flat market, and this tells us exactly what to do.
Our plan on the dollar this morning:
– There is no strong short term trend, so anything can be possible.
– No bias to the long or the short side until we see some direction from the dollar.
– Sideways dollar = sideways crude/gold/euro/Russell
– Buy the lows, sell the highs, avoid the middles and the fake-out breakouts.
– If the dollar does start to trend we can then re-assess the situation.
– If we get new highs, we then start looking for selling opportunities
– If we get new lows we then look to buy at support.
– Be selective, it’s very slow out there this morning.
915am est
Crude Oil futures are in a very rough spot on the continuous daily chart.
CL ##-## shows us in the middle of the price channel and trading right on top of the BMT.
The BMT is not where we want to be trading, so this tells us today will likely be a sloppy Tuesday.
Clue #1 = daily chart BMT at 95.00
1000am est
We took our first two trades on crude for 2 winners.
Now we have factory orders lower than expected.
Factory Orders are lower = bearish for USD = bullish for the Crude, Gold, Euro, Russell, etc.
1045am est
The personality on crude oil is slowing down, changing from the very little bit of action we got earlier this morning.
We have a bullish price channel on crude oil, so we know that the highest percentage trades are to the long side.
1130am est
Our plan of attack is very simple:
If price rises:
– Im buying pullbacks with new highs
– Im selling at overhead resistance first
– Then don’t buy the highs, wait for a pullback.
– Selling 96.99 HOD and high of the range
– Selling 96.67 as resistance
– Im avoiding 98.00 and the 97.00 big round number.
If price falls:
– Im buying support levels below me
– Im selling retracements after that support is broken and turns into resistance.
– Never sell the lows, sell retracements
– Buying support at 96.30 34r trigger line
– Buying 95.95
– Avoid 96.00 big round number
– BUYING phod 95.47
