April 7, 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
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
Its been a quiet week with economic news which has caused the markets to pause and trade sidways this week.
Today’s news we have jobs report early this morning, so I will be looking for volume to enter the market on news outside of expectations.
We have the natural gas report later this morning but that wont be a very big mover, and with no news on friday today may be another sluggish morning.
Im going to be watching the speed and average true range (ATR) on the dollar early this morning to pick up on the market’s personality.
Lets look at the market’s we’re trading today….
Crude Oil Futures
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| 89range crude oil |
Lets get our eyes working on the most important information on crude oil, so im using an 89range chart for the slower timeframe.
I can see a large bullish price channel and you can easily see the sideways market forming in the white box. this tells me we are bullish long term and sideways in the short term. I know have some basic information to work with moving forward.
Now lets open a faster timeframe, the 34range will show me where the price levels are.
 |
| 34range crude oil |
Looking at the 34range on crude oil and we see the following:
- Bullish Price Channel
- Sideways Market
- PHOD and PLOD
- Dollar Correlation
If crude oil gives us decent price action today we could have a great morning with these excellent price patterns.
First thing i see is this strong bullish trend, although a little sloppy, very clearly in an uptrend. This trend tells us buying at support as price rises will be the highest % trades.
I also see the sideways range defined by the white box. Inside of this sideways range is the PHOD and PLOD, which makes this an Inside Trading Day.
I know from years of experience that when price is inside the previous day’s range that I need to be more careful. I also know that the PHOD and PLOD will act like price magnets, drawing price up to the highs (where we will sell) and then back down to the lows (where we will buy).
Lets also keep in mind the Dollar Index Futures Correlation as well. the dollar is trading in a sideways market, so there is no directional bias, but that can change, so watch the DX 06-11 during the day to see when it is rising or falling.
with that information, my plan of attack is as follow
- if prices rises im selling the highs first and then buying pullbacks when we break new higher highs.
- if price falls im buying support first, and then selling retracements as support is broken with lower lows.
- Im keeping an eye on the highs and lows of the day’s range, buy the lows and sell the highs.
- I like the idea of buying the support of 108.3 because its the low of the price channel & lows of the range
Lets do Gold Futures next…
