Hopefully this early volume will give us some opportunities because we have Ben Bernanke speaking at 930am. There is nothing major planned for his speech, but that doesnt mean people wont be paying attention, taking away from our volume.

Im going to be watching volume after 930am today, looking for signs that the BIG MONEY has left early. We have important Non Farm Payrolls on Friday @ 830am, and today is Cinco de Mayo so we can assume people MAY be looking for a reason to hit the exits early. We shall see!

As always, I’m watching the speed or the orders coming into the market along with average true range (ATR) to find the best times to trade the markets today.

Crude Oil 89Range

My trading method will work on ANY liquid market, here is what I’m focused on day trading today:

Crude Oil Futures

Crude Oil tumbles off all time highs last week and gives us plenty of great trading opportunities today.

First I want to clear my mind of what happened in previous days and I will use an 89range chart to do that.

This slower timeframe shows me the following:

Sideways Range in the white box
Price Wedge in the Pink trend lines
Major Levels of Support below us
BMT level above us

This is a very effective tool for focusing my attention on the most important AREAS for us to be entering and exiting our trades.

Crude Oil 34Range

This chart tells me that we have recently broken a price wedge. We tumbled through the BMT, which is often the center of the range, and we are testing major levels of support at 106.00, 103.30, 102.70, and 101.50. I will use these major levels, and areas as my guide this morning.

Now lets open our faster 34range chart and plan our attack today with more detailed information.

In review of the 34range we see the following:

Sideways Trading Range(s) in the white boxes
Price Wedge in Pink trend lines above us
PHOD and PLOD above us
BMT Above us
OPEN is above us
Major Levels of Support below us

With that said, our plan of attack will revolve around these price ranges today. We’re trading at the lows of the massive sideways range at the moment. Im looking for clues to see if this support at 106.00 will hold, and if it does, will we go back up to the PLOD and PHOD?

Simple question today….will we keep falling to new lows? will we bounce off this support and rise back up into the range above us?

I will be reading tape around these levels making educated decisions along with our members in the trade room today.

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