April 4, 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
7:15 pm Ben Bernanke Speaks
Looking at the news this morning we know today will be the day when traders come back to their desks ready to conquer the 2nd quarter of the year.
I will expect a little sluggish open this morning because it is a Monday, and we will most likely see the morning session come to an early close seeing Ben Bernanke speaking later this evening and FOMC Meeting minutes are on Tuesday afternoon.
Looking at the news for the WEEK we can see its pretty bare, so look at the speed of the tape as a guide for the best times to be trading this week.
Lets look at the charts we’re watching this morning…
Crude Oil Futures
800am est
– We open the 89range chart on crude oil futures and we see the following:
o Bullish price channel in orange trend lines, we are in the middle
o We also see a major price wedge in pink trend lines, and we have just broken the highs of the wedge, and possibly looking to enter back into the wedge from above.
o Look to sell the highs of the wedge below 106.00
o Right now we’re in the middle of the price channel, so we don’t have any swing trades setting up yet.
o The big picture we can see clearly on the 89range chart
o In the middle of the channel = anything can happen
o At the highs of the wedge, im looking for price to get SUCKED DOWN into the highs of the wedge.
o Bullish price channel does tell us that the better trades will be LONG this morning, but I need a faster timeframe to confirm the short term direction.
– We open our 34range chart of crude oil 0511 and we see more information:
o We’re above the 107.71 level from last week, so we marked that level with audio alert to remind me when the price drops below the 107.71
o Bullish price channel in green trend lines, and we are in the middle of this channel
o Buy the lows of the channel, buy the support below the channel if it breaks out.
o The bull-channel = higher % trades to the long side today
o We also see a short term sideways market from 108.78 down to 108.00
o We know to avoid the middle of the sideways market, and to sell the highs and buy the lows
830am est
– Still very slow in the markets this morning as they wake up on Monday morning
– We open our 89range chart of the gold futures and we see the following:
o Major bullish price channel in yellow trend lines
o Short term bearish price channel in orange trend lines
o Sideways range from 1450 down to 1411
– This SLOWER timeframe of gold futures removes the CHAOS from the market and allows me to focus on the most important aspects of our day ahead.
– In the case of gold, I need to be aware of my surroundings, inside the sideways range we can buy OR sell, just know WHERE.
845am est
– We see the sideways range on gold futures, and we know the best ways to trade this sideways range
o Bullish channel tells us to buy the support levels first, as the highest % opportunities
o Sell the highs and buy the lows
o Avoid the middle of the range
o If prices keep rising buy pullbacks
o If prices keep falling to new lows, sll retracements
