82 Ticks Live Day Trading Crude Oil and Scalping Gold Futures SchoolOfTrade.com

The biggest lesson we learned today was how to trade a channel when we breakout AGAINST the trend…if you missed that lesson this morning, don’t miss your chance to learn it here

830am EST

Crude Oil Futures:

– Slow timeframe shows a wedge pattern with lower highs and lower lows, creating an opportunity for us to sell the highs of the wedge.

– Fast timeframe shows a bearish channel, and a very side channel when you look at the highs and lows

– The speed of the market is very slow, so let’s wait for better speed.

– Using the channel on our 13-range chart, we can see 2 potential entries (speed is slow, so be careful)

o Going long above 81.60 will be very close to the top of the channel, so let’s be more conservative because of the slow speed of the summer months and take entry long above 81.76, which is a decent range away from the top of the channel.

o We can also look short selling these highs with a 2-step pattern reversal below 81.32.

930am EST

Gold Futures:

– Slower timeframe shows us in the middle of the wedge pattern

– Fast timeframe shows us looking for a 2-step reversal pattern off the highs

– Big picture on gold futures tells us in the middle and we should wait for better price action.

Russell Futures:

– Slower timeframe chart shows us in the middle of the wedge pattern

– We can also see a very sideways and sluggish market on the 34-range chart over the past week of trading, so lets be careful.

1030am EST

Euro Futures:

– Slower timeframe shows two distinct patterns

o Bullish channel, and we are trading at the lows of the channel, good place to be a buyer

o Sideways range and we are at the highs of the sideways range, good place to sell.

o As you can see we have conflicting signals on the Euro, so let’s be patient and wait for our best entry.

1110am EST

– we see crude oil attempting to break the channel above 43’s and looking for profit at 70 (1/2), 95 (1/4) and then the highs of the wedge at 82.14 for the final profit target.

– If we can’t breakout above, let’s look for the 2-step short below 23, but we have support at 21, so lets look short below 20’s

– I will take profit at 81.05 (1/2), 75 (1/4) and then all the way down to the bottom of the wedge around 80.50.

1115am EST

– We now see the buyers back on the tape for the Russell Mini, and now our 2-step short isn’t looking too good.

– Lets buy the breakout