April 21, 2011
- in Uncategorized by schooloftrade
Best Way to use a Double-Bottom Day Trading Crude Oil and Gold Futures
Let’s review our crude oil this morning:
– Open the 89range chart and see three distinct patterns:
o Price Wedge
o Price Channel
o Sideways Range in the box
– We are above the wedge below us from earlier week
– We’re above the sideways range from earlier this week
– We are in the middle of the bullish price channel (not at the highs or the lows)
– Im going to now use these three patterns as my guide when planning my day on crude oil.
– Open your 34range chart and you see the following:
o Sideways range from 112.48 down to 111.69
o We see the STRONG bullish channel in pink trend lines
o We also see that we have the MAJOR sideways range from 110.68 down to 105.79 right below us
o The previous price wedge is below us, with the highs around 109.00
o The PHOD is above us, and we are trading INSIDE the range from Wednesday
o Inside day = nothing has changed = expect see the sideways ranges HOLD…until something changes.
o Look where the Big Money Trigger Line is….all the way down at 109.00
o We look for price to be attracted back down to the BMT
o In preparation for what MAY come our way today we look above us for the most important levels of resistance
o These will be my final profit targets today, or places to sell the highs.
Let’s plan our trades on crude oil today:
– Sideways ranges are the most important
– Inside day = expect sideways ranges to hold
– Buy the lows at 111.69, sell the highs of 112.42
– If price rises:
o Im selling first, and then buying pullbacks with new higher highs
o I don’t buy the highs, don’t buy resistance (buy support)
o Selling 112.78, selling 113.0, selling 113.56 and 114.0 at the highs
o As prices are rising im buying pullbacks if the sellers fail.
– If price falls
o Im buying first, and selling retracements with new lower lows
o Buying 111.69, buying 111.00, 110.82, 110.68 is the highs of the range below us
o I don’t sell the lows, I don’t sell the support, I wait for new lows and sell retracements.
845am est
– Let’s review the dollar index to see what the market’s personality is LIKELY to be
– Dollar keeps dropping, but most recently has held at 74.000 major support
– I don’t really care about what happened in the PASSED on the DX
– I focus on what’s happening NOW
– We see the 13range on the dollar shows even though we were falling, we now have higher lows and higher highs, rising prices on the dollar
– The dollar correlation says that whatever the DX personality is will be the same on the markets we trade
– Sloppy and sluggish dollar = same on the markets we trade
– Rising dollar = falling price on other markets
905am est
– We look at the 89range on gold futures and we see the following
o Strong bullish price channel
o We are at the highs of the channel
o A major sideways range from 1510 down to 1478
o Minor sideways range from 1510 down to 1495.3
o We also see major support @ 89.6 and 84.1
1000am est
– We see three news events that dollar bearish, bad for the US economy
– We SHOULD see the DX fall
– This SHOULD allow for rising prices
– Lets look for buying opportunities, buying pullbacks or buying as price drops.
1015am est
– The market’s personality appears to be changing after the 10am news
– We had good speed for about an hour there, now we’re seeing it slow down
– We have crude oil trying to swim upstream, and once we get above the 34range trigger line we can expect better moves
Click Here To Review Our Automated Trading Results From This Morning
