April 20, 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 Existing Home Sales
10:30 Crude Oil Inventories
11:00 Transition into Lunch
11:30 European Close / Live Webinar in our Trade Room
Looking at the news this morning we have our typical wednesday scenario; crude oil inventories at 1030am will have us watching the clock around 10am for the personality on crude oil to start changing. We will wait for after 1035am today and look at crude again for trading opportunities.
This week is a variable with the 2 Holiday’s. Today is the final day of Passover, and we have Good Friday comming later in the week. Volume will be key in the next 48 hours for the best opportunities.
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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| Crude Oil 34Range |
Lets take a look at the market’s we’re trading this morning…
Crude Oil Futures
Crude Oil has made back a lot of the loss in value from earlier this week after OPEC’s comments about supply and demand.
Im using a 34range chart on crude oil and I can see the following:
- Price Wedge in yellow trend lines
- Major sideways range in white box
- Bullish Price Channel in Pink trend lines
- PHOD and PLOD
The first thing we know is that we are inside this major sideways range (white box) that we have been trading in all week. I can also see the PHOD is below us @ 800am so this is considered an outside trading day.
Furthermore, its important to notice the WIDE RANGE of the day on Tuesday. Look at the range from PHOD down to PLOD….wow. THis tells us a failure at the highs today could have crude tumble into this range below us. Get ready for selling opportunities below the PHOD, people will be agressively looking to short that market if they see weakness.
We have the price wedge right below us, and we are currently in this strong bullish channel, which may/may-not be comming to an end. Im always watching for a sideways market to develop at the highs to signal a change in trend. Look out below! 🙂
My plan of attack on crude oil today:
- Beware the different phases crude oil goes through on wednesday’s
- Sell the Highs of the Wedge Pattern, selling below 109.40, 109.00
- Buy the lows of the price channel as support, but beware of buying at the highs of the wedge
- If prices rise im selling resistance first, then buying pullbacks
- Prices rise im selling 109.86, 110.0, 110.14, 110.43, and the highs of 110.54
- As prices make new highs I will buy pullbacks, never buying at the highs
- If prices fall im buying support first, then selling retracements as we see new lower lows
- beware selling into the lows of the wedge, or the lows of the channel
- Buying support at 109.00 for a high risk long entry (scalp)
- buying 108.00, 107.18, 107.00, 106.01, 105.79 the lows of the range
- never sell the lows, selling retracements
