95 Ticks Selling the Highs on Crude Oil & Russell E-mini Futures

We had a challenging day in the trade room today, but we followed our rules and waited for the summertime markets to get in a position for us to take our high percentage trade patterns.

We saw sideways markets today, and in today’s video we go over what to look for so you know how to trade days like today.

830am EST

– Crude Oil futures are just breaking the wedge pattern on a sideways market

o slower timeframe (34r) shows the wedge pattern and we just broke to the upside, so look for this market to reverse after failing this breakout

o We aren’t out of the woods yet, we have the top of the trading range @ 78.55, so look for the short trade reversal at these highs.

o Fast timeframe chart shows a strong uptrend, higher lows and higher highs, and decent speed on the way up.

o We also notice that the SPEED of the tape from the pace of tape indicator has been RISING with the rising price

 This confirms the move. Increasing speed always confirms the market sentiment.
o We know we’re looking for a short trade on crude oil because we saw the high of the range being tested and speed dropped, so we expect to get a chance to short this contract
o First start with scalping patterns on my 4 range chart

 We are trading in the middle of the range on the 4range chart, so I need to wait for the price to test a RED LINE.

o Now let’s move a little slower, let’s use a 13-range chart

 Same problem on the 13-range chart, we’re trading in the middle

o Let’s move slower to a 21-range chart

930am EST

– Gold futures are not looking too good today, the fundamentals tell us to be very careful
o Slow timeframe (34range) shows we are trading inside of our ‘trigger zone’

 This ‘zone’ is a transitional area, so trading inside of this zone will results in sideways chop
 We set our price alert indicator to make us aware of when we break out of this trigger zone.

o Fast timeframe (4range) shows a sideways trading range from 1198.0 down to 1187.7

 We are trading at the HOD from yesterday, which happens to be in the middle of this range, so beware! Stay away from the middle!

• This tells us that the buyers on Gold futures have done a great job at protecting these lows, but they cant get the price to break the highs.

 We also notice a strong up trending channel on the fast chart, so we marked that as well.

930am EST

– We’re waiting for 935am EST to start trading after the US open. No trades so far, very slow and sluggish, but we saw the exact same thing yesterday.

o Big difference today: no news, and Bernanke @ 1000am EST at the Senate Committee.

1000am EST

– We’ve gone through the US open, and we’re waiting for the 1030 crude inventories to be released
– Fed chairman Bernanke has been pushed back to 200pm EST for the announcement, so we need to wait.
– We notice that a little less volume is making this day a little harder to get our trades to trigger.
– For example on the last gold set-up

o Lots of buyers
o Momentum didn’t confirm
o Momentum is MORE important than big buyers in low volume times like summer time trading.

1030am est

– Crude inventories news is out now
– Looking for short on crude still