Divergence Indicator day trading strategy for Crude Oil and Gold Futures

830am EST

– Dollar index is giving us some mixed signals today

o Concerned because

 Low average true range
 Still in the trading range from FOMC Day
 Low speed on the POT Indicator

o We are excited about:

 Wide trading range (relatively)
 Moving market
 Overhead resistance (support)
 We’ve broken the wedge pattern, so expect the dollar index to make some moves

845am EST

– Crude Oil futures are trading sideways off the highs from last week

o Trading range from 86.00 up to 87.00
o Buy the lows of 86.00
o Sell the highs of 87.00
o And remember I can buy and sell any direction I want with this sideways market.
o Buy the lows, sell the highs, avoid the middle!

910am est

– Gold futures coming off all time highs of 1400.0 and now we have the market trading sideways in a wedge pattern

o Sell the highs on gold
o Sell the highs of the wedge
o Avoid buying into overhead resistance

1000am est

– We took 4 trades so far today
– First trade was a loss on the crude oil when we had a fake-out breakout

o We also learned a VALUABLE lesson when using the divergence indicator

 Re-set the indicator pressing F5 to see if the fast timeframe has given us any indicator arrows

– Second trade was a winner on gold

– Third trade was a winner on crude oil

– And the final wave trade was a BIG Winner but the choppy market bounced me out early before the BIG MOVE could occur.