April 11, 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
11:00 Transition into Lunch
11:30 European Close / Live Webinar in our Trade Room
Looking at the news this morning we know exactly what to do. Today is Monday, with no major economic news, which means the following
- No news to act as a ‘catalyst’ for price movement
- Wait for the SPEED in the market to be increasing and very fast
- Wait for the Average True Range to be rising, we want to avoid falling average true range
- Keep an eye out for the ‘Golden Lunch’ which occurs at the end of the day when the volume comes in as a last push around 1130am EST.
We know the average true range (ATR) will be something to watch early this morning, and looking for the best speed to enter for the best trades. Stay patient as well, wait for the best times to trade, even if its late this morning.
Lets take a look at the charts this morning…
Crude Oil Futures– We see lower lows after making new highs all week last week
– We have a wedge pattern developing whenever you have a trending day or two and then we come off new highs or new lows
– So we know this is going to be a wedge based on what happened last week
– We also see the bullish trend has NOT come to an end officially yet, so we need to wait and see what the day brings
– The bullish price channel on the 89range chart reminds us to buy pullbacks and sell retracements on the way up
– However, the most recent wedge pattern and being at the highs of the channel tell us that ANYTHING can go
– We can buy the lows of the channel as support
– We can sell the highs of the channel as resistance
Lets plan ahead for the best spots to trade crude oil
– If price rises:
o I’m selling the highs of the wedge around 112.06, 112, 59 overhead, and 113.0 overhead
o I will also consider buying pullbacks above these resistance levels, which will soon become support
– If price falls:
o I’m buying the lows of the wedge at 111.04, 110.0 below us, 109.83 below, and 109.00 the support all the way down.
o If prices keep dropping I will look to sell retracements when we make new lower lows
