April 14, 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
8:30 Jobless Claims
8:30 Producer Price Index
9:00 Crude Oil OPEN
9:30 US Market OPEN
10:30 EIA Natural Gas Report
11:00 Transition into Lunch
11:30 European Close / Live Webinar in our Trade Room
Looking at the news this morning we have 830am which should give us some volume to get this trading day started. Nat gas at 1030am today is very minor, but we will watch it all the same. Im expecting a full morning of trading today, but 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.
Lets take a look at the market’s we trade most…
Crude Oil Futures
Crude Oil continues to trade in a sideways range this morning after a strong bearish price channel brought prices off new highs late last week.
I can clearly see the following on my crude oil chart:
- Sideways range in the white box
- PHOD and PLOD
- Price Wedge in Yellow below us
- Price Channel in blue above us
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| SchoolOfTrade.com Crude Oil 34Range |
open your 34range chart on crude oil and you can see a clear sign of transition. We just finished the downtrend, now we trade sideways, in a possible attempt to jump back up into the price channel above it.
First, the sideways range is easy to trade, Buy the lows, sell the highs, and avoid the middle.
The PHOD is above us at 107.56 and the PLOD is below us at 105.31 which makes this an Inside Trading Day. This tells me that buying the lows, selling the highs will be an excellent approach today, considering that we expect to see this sideways range continue until it breaks those PHOD/PLOD levels.
There is a major price wedge below us and the highs of the wedge are at 106.00. We watched on Tuesday and Wednesday this week as crude oil tried to trade below 106.00 and failed FIVE times. Today we may see a successful attempt, and if we do we will be selling the highs of this wedge below us.
and finally, if price jumps up into the channel above us we need to be looking for buying opportunities b/c the bullish price channel will pull prices higher if we get above 109.00.
Here’s my plan of attack on crude oil futures:
- Beware trading around 106.00 this area will be challenging to see consistency in price action, so i will read the tape and make an educated decision at that time.
- If price rises, selling 107.45, 107.60, 108.00, 108.32, 108.45
- If prices rise im selling the highs first, but if we see new higher highs through resistance I will then consider buying pullbacks.
- If prices fall, im buying 105.31, 105.00, 104.82, 104.00
- If prices fall sharply and break support with new lower lows I will then consider selling retracements.
- I will not sell the lows at support.
- I will not buy the highs at resitance
- I will not force trades today 🙂
