This was worth the wait day trading crude oil futures

815am est

Reviewing Gold Futures today we being on the 89 range chart:
– Strong Bullish Trend

– Sideways range from 38.7 down to 24.7
– Larger sideways range from 38.7 down to 03.2
– We see major support from a swing high at 1519.0
– We are at the highs of these ranges

We open our 34range chart to try and define the specific price levels we will be using, and look for more detail in our trend lines, channels, and ranges

– We see a new bullish price channel in blue trend lines
– Price channel tells us to buy pullbacks today as the higher % trade
– Sideways ranges below us give clues for the bullish sentiment, however, don’t forget the PHOD is below us, which is act like a price magnet

– We don’t have any levels above with the exception of the highs of the channels
– We do have ranges below us, and we look for sellers to enter the market if w break below 1519.2
– Big Money Trigger Line acts like a price magnet and will try and draw price down to 1511.1 area. This is also the lows of the channel, so look to buy.

840am est

– We see news come out and the markets are still quiet
– We see the dollar index is in a short term bounce up off the lows of the range from earlier this week
– We have a question to ask for the dollar…will it rise off this support or will it keep dropping?
– If the dollar rises we want to sell, and if the dollar falls we want to buy.

910am est

– There is no big money in the markets
– Without the big money the moves we want to take will not be very often
– The big money provides the direction, without it, the little guys (aka US) will just push it around within its trading range

– Lack of big money:

o Be very careful, this is NOT going to be the BIG MOVES
o Use the range we’re trading in right now as your focus
o This can change VERY quickly

1000am est

– Crude oil futures are trading around the 113.00 big round number
– We need to plan our attack for the remainder of the morning

– If prices rise:

o Selling the highs of the wedge at 113.30
o Selling 113.38 resistance
o Selling 113.98, 114.00 big round number
o Selling the highs of the price channel
o Sell the HOD at 113.40
o I will also consider buying pullbacks with new higher highs
o I will not buy the highs, I will wait for a pullback

– If prices fall:

o Im buying support at the lows of the price channel
o Buying support at 112.25, 111.70
o I will not sell at the lows, but I will sell a retracement after we make new lows
– Now that we have our best levels located, its as simple as waiting for price to come to us
– When the price gets to these levels we then use our 3 price patterns and our entry rules to qualify a trade.

1010am est

– We see all three BMT’s are the same price level on crude oil (21, 13, 4)
– This tells us this market is FLAT and FLAT in all timeframes

1100am est

– We have the end of the week coming up quickly
– After 11am est on Friday’s we know the markets are getting very thin
– We have crude oil stuck inside a narrow wedge and trading around the BMT on the 4range, this is a red flag
– We have ATR falling now after 11am on crude oil
– 13r momentum on crude oil always confirms lack of direction, it is very choppy
– Gold made new all-time highs and we bought pullbacks on the way up
– Now we see the speed and momentum tell us to look for a price reversal off these highs
– Speed is so slow, that it makes trading now very difficult.
– We need to wait for the crude oil to test the HOD or down to 112.23 to buy the lows
– We need gold to drop off these highs for the next trade short below 1542.9

Daily Review:

– I want to review how the day worked
– Did my daily prep have any value?
– Did I follow my rules?
– Did I take trades where I should have?
– How can I use this info to improve in the future?

Gold:

– We were looking to buy pullbacks with the bullish price channel and we did that with success
– The dollar dropped and the Gold made new highs, which got us trading
– Sideways range PHOD was BELOW us, which also signaled buyers strength

Crude Oil:

We saw sideways range and a wedge at the open of crude this morning.
We sold the highs of the range for 2 winners, and the only loss today was the only trade that went against our plan of attack.

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