- in Uncategorized by schooloftrade
90 Ticks Live Day Trading Euro Futures Crude Oil Gold Mini Russell SchoolOfTrade.com
Today was FOMC Day which means we needed to trade today a little differently than we would otherwise.
We also saw a very interesting pattern on Crude Oil where we had multiple timeframes conflicting each other which led to our first winning trade of the day.
On top of that, we watch as the Dollar Index was trading sideways and then when it broke out of its range we went short on the Euro.
This is usually on a Wednesday because it’s a 2-day meeting, but in the month of August they make it only 1 day, which is today.
The characteristics of FOMC day is to expect good volume in the early hours of the morning session, and then expect to see the price action go flat and quiet earlier than normal
Expect a slowdown around 1030am EST, and in the summer months this will/may be even earlier.
How do we day trade FOMC Day?
We look for our opportunities early, we lock up profit because we can expect this market to be choppy, and we keep an eye on the time and the speed in the market to avoid making that one last losing trade.
830am EST
– Slower timeframe shows a concerning picture, we are trading in the middle of both the bullish channel pattern and the wedge pattern, so this is tough spot on crude oil
– My initial thought is the best option is to buy the lows at 79.00 or then buy lows again at 78.00 as we test the edges of the wedge pattern.
– We took our first trade of the day on the crude breakout below the channel, selling short at 79.85
– Slower timeframe shows us in the middle of the very strong upward trending channel
– We just missed the entry short below 9068, and now we will wait for another option to enter if the market retraces up to test the swing low of 9068 I will be looking for an entry short with my final target all the way at the bottom of the channel at 8900
– On the 13-range chart we use our Trigger Zone tool to define the transitional area on our chart and it looks like from 9022 up to 9060 we have to wait to see what happens next.
– I will look for a short entry below 9022 when we breakout below the zone, and then I will also look for a long entry if we break out above the 9068.
– As of right now we have to wait for the price to breakout or test the extremes of this trigger zone.
930am EST
– Crude Oil futures are trading around the lows of this wedge
o We took the long entry for a winner @ 830
o But then we took a losing trade @ 945 on the Fast Track day trading method
o We finally got the opportunity to buy the lows of the wedge @ 947am EST for another winning trade
o Price action is very tough today on the crude oil futures market
955am EST
– News at 10:00am EST
– Euro currency futures are trading sideways at the lows, but we need to watch the Dollar Index futures for a breakout.
– Remember the dollar is a negative correlation to the currency futures, so a rise in the dollar will be an excellent short opportunity on the Euro
– Our first short on the Euro comes @ 953
– Looking for the dollar to continue this upward move and looking for a re-entry on the Euro futures.
1030am EST
– Dollar breaks up above resistance, and we enter short on the Euro @ 1037am EST on big sellers, momentum pointing down, and great speed of the tape.
– We are reading the tape the entire time for this move, watching the dollar push new highs, taking our Euro short down along with it for a nice winner.
1100am EST
– Careful, volume will start to decrease with summer and FOMC today
– We can see a nice buying opportunity on crude oil futures, look for the long trade above 80.14
– We also see a buying opportunity on Gold Futures when it breaks out of the sideways trading range at the low of day.
– Crude Oil was a nice winner
– Gold futures were also a nice winner!
– Great work today everyone!
