Day Trading Morning Prep Gold, Crude Oil, Dollar Index, Euro, E-mini Russell Futures
My trading method will work on ANY liquid market, but here is what im focused on day trading today:
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| 89Range Crude Oil |
Crude Oil tumbles off new highs and gives us some great trading opportunities this morning.
- Price Wedge in Blue Trend Lines
- Bullish Channel in Yellow trend lines
- Sideways Range(s) in the White Box
This information is vital, now I know what to focus my attention to when I use my faster timeframe to find the specific price levels.
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| 34Rage Crude Oil |
Open your 34range chart on Crude Oil and you see the following:
- Price Wedge in Blue Trend Lines
- Sideways Range in the White Box
- PHOD and PLOD are above/below us
- Major Levels of Support below us
- Major Levels of Resistance above us
- Big Money Trigger Line (BMT)
The first thing I see is the price wedge in blue trend lines. Notice I had to draw this VERY bullish with higher highs, this was needed with the higher highs we keep seeing (114.00, 114.17, 114.83). I want to buy the lows and sell the highs of the wedge, and I will use all three of my price patterns to accomplish this.
Next I see the sideways range from 115.00 down to 111.00. This range is made even MORE important because the PHOD/PLOD is above and below us. We are trading inside the range from Monday, which makes this an Inside Trading Day, which means we will focus on selling the highs and buying the lows of the range as the highest % trades. Furthermore, if we do break above or below the PHOD/PLOD we will then consider this an “outside” day and then look for pullbacks and retracements at the new highs or lows.
Major levels above us include 115.00, 116.00 and levels below us include 111.89, 111.00, 110.82, 1110.71, 110.35, 110.00, and 109.15. There will likely be more levels identified during the trading day once we get started.
And we cant forget the Big Money Trigger Line (BMT) is right in the middle of this range at 112.78. We know the BMT is often the best profit target, NOT the best place to enter a trade, which means the current price os 112.50 is not in a very friendly spot on crude oil this morning.
In review of this information, my plan of attack will be as follows:
- Slight upward trend on the dollar this morning has me ‘watching’ the short side of the market early, but that can quickly change, but it is there to be seen.
- If price drops im buying the lows of the wedge 111.89, buying the lows of the sideways range 111.00, and buying the PLOD 110.82
- If price rises I will avoid trading around the BMT, and will sell resistance at the highs of the wedge 114.50, highs of the sideways range 114.83/115.00 and the PHOD 114.83.
- I will keep a close eye on levels above us and below us if price breaks above the PHOD or below the PLOD, in the meantime I will be looking to trade inside the current trading range from Monday.
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