April 25, 2011
- in Uncategorized by schooloftrade
Day Trading Morning Prep Gold, Crude Oil, Dollar Index, Euro, E-mini Russell Futures
‘We are what we repeatedly do. Excellence, therefore, is not an act, but a habit’ – Aristotle
Let’s begin our morning routine with the economic news for today’s trading session.
8:20 Gold & Currencies OPEN
9:00 Crude Oil OPEN
9:30 US Market OPEN
10:00 New Home Sales
11:00 Transition into Lunch
11:30 European Close / Live Webinar in our Trade Room
Looking at the news this morning there hasnt been much over the weekend except for new highs on Silver which has caused Gold to spike a little this morning ahead of the only news of the morning @ 10am.
Tomorrow is the beginning of the Fed’s new meeting process. We will speak about how THIS WEEK’s Fed Meeting is a little different.
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.
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We learn this morning that the Orthodox Easter Holiday is today, closing the banks in many parts of Europe.
This won’t have too much affect on us, with the exception of lower volume at certain times of the morning, mainly focused on the ‘Golden Lunch’
We will keep this in mind later this morning.
It’s important we focus on getting familiar with the market’s personality and the MOST IMPORTANT aspects of our day/week/month.
Open your 89-range chart on the gold and we see the following:
– Major Bullish Price channel, we are the highs
– We speculate that below us the swing and swing low creates a sideways range, that we have traded above.
With this new information, we can plan our attack using the most important aspects of the day ahead:
– We are at the highs of the channel, I want to sell the highs of the channel
– We have a sideways range below us, and we expect if price can drop into that range, price will go down to the lows of the range.
Now that we know what the most important aspects of our day will be, we now use a 34range chart to zoom in and find the exact price levels we need to trade with.
Crude Oil Futures
Open your 89range chart on the crude oil futures and we see the following:
– Bullish channel, we are not at the highs or the lows of
– Wedge pattern and we are at the highs
– Sideways range we are just off the highs
With that said, our plan of attack for the most important aspects of our day:
– Sell the highs of the wedge
– Sell the highs of the sideways range
– Sell the highs of the price channel
– Sideways range = buy the lows and sell the highs = we can trade either direction.
