Buy the low of day on Euro Futures with Dollar Index Correlation for 40 ticks

Crude Oil futures have recent made new lows last week and now the market has bounced back off the lows and trading just below 75.00

Fast timeframes on crude oil show a sideways market all day morning today.

Gold Futures are still trading at their highs of 1240, and trading sideways in the middle of the channel candlestick pattern.

The faster timeframes on gold show us a very sloppy and sideways trading range.

Euro Futures are trading sideways at the big round number of 1.2700, and we also see the market at the bottom of the channel pattern.

The fast timeframe on the euro shows very flat sideways trading.

eMini Russell Futures are trading above the broken head and shoulders candlestick pattern.

We broke below 600.00 last week, and then we saw the reversal off the new lows to come back up above the big round number.

Now above the 600 we should be considered either sideways or bullish in market sentiment today.

Faster timeframes on the emini Russell show us grinding slowly down the lows of the day as we go into the morning session of the emini’s.

Morning Routine:

– Begins with identifying our daily news (schooloftrade.com/news)
– Set my alarm for the news events we have today
– Open my charts and begin to review the market structure today
– Start with the slow timeframes charts

o 90 days of market data
o Goal is to see the big picture of the market

 Multiple days of market information
 Daily, weekly, monthly highs and lows
 Double-tops and bottoms
 Trend lines

• Define the overall market structure and they provide additional levels of support and resistance for us to use in our trading.

• Begin with the highs and the lows, and then I mark trend lines around the extremes of the price action, and then I look for more trend lines afterwards.

– With my trend lines drawn, my big round numbers and double-tops and bottoms marked I can now look for the trading range

o Summertime markets are going to show a lot of days with sideways, wedge, channel patterns, so we need to be on our toes looking for them.

o Find the highs and lows of the trading range, and don’t be afraid to look back at earlier price action to find a good trading range

– With my trading range defined, now I can avoid the middle, and wait for the highs and lows to be tested.

o Buy the lows
o Sell the highs
o Avoid the middle

– 900am EST

Crude oil futures are trading off the highs of the wedge pattern just below 75.00

We will look to sell the highs of this wedge, so looking for a breaker short pattern or a 2-step reversal pattern short at these highs.

Sideways market and very slow on the fast timeframe of crude oil.

We notice that we just broke the bullish channel pattern that formed last Friday, and now we’re trading sideways at 75.00

Gold futures are still trading at the highs from last week, and we can see a clear sideways market at these highs.

Further investigation into the price action shows the market has taken a ‘capital protection’ structure, with lower volume at the edges, and the highest volume in the market in the middle of the sideways range.

What does that mean?

– When the most volume is at the edges (not what we see today), this market is expected to breakout.

o Use a breakout pattern to buy the above the highs and/or sell below the lows.

– When the most volume is in the middle, expect the breakout to be a fake-out.

o Im looking to sell the highs and buy the lows because we have a strong feeling that the market will reverse off the highs/lows back into the same trading range as before.

Gold fast timeframe shows a very tight and narrowing trading range, and our biggest concern is because we see the market trading at 1237.7, which is the OPEN from last Friday.

We consider the OPEN levels to be the ZERO line, which means if we are trading back at the same price level as the OPEN that NOTHING has happen, so no change in market sentiment.

Very big concern that gold is trading sideways at the OPEN from Friday because we know that Friday showed us almost nothing for trading opportunities, so that tells us we will likely see much of the same today.

With that said, gold will be on the bottom of our trading list until it gets away from the OPEN of the day.

Euro Futures

Slower timeframes show us at the lows of the bullish channel, so we should be looking to buy the lows of the channel

However, we also see a sideways wedge pattern which is very tight and almost ready to break out of the wedge.

We see a small problem…we are in the middle of the wedge, so we cant buy the lows and sell the highs, and we are also in the middle of the sideways trading range from 1.2768 down to 1.2665

Russell Futures are trading in the middle of the wedge pattern on the slower timeframe, and trading in the middle of the sideways trading range on the fast and slow timeframes from 620.9 and down to 606.1

We need to avoid the Russell in the middle of the range, and look to sell the highs and buy the lows.

We may be waiting for the first pattern on Russell to trigger for some time while it trades in the middle.

930am EST

– At this point we should be seeing enough SPEED to make the pace of tape indicator to turn YELLOW/GREEN, but we don’t, we have no speed and a very quiet market.

– We’ve already gone through all the different steps to our morning routine, and now we wait.

– Remember that when we see slow summertime speeds, now is a good time to look at our slower charts for more broad patterns.

– Rather than be a scalper with such slow speed and sideways trading, the better option will be a day trader or position trader.

– Lets grab our 8, 13, and 21-range charts and look for more patterns that may be setting up.

1100am EST

– The market is trading VERY slowly today and now we have the end of the day coming soon.

– We don’t have any reason to wait for the Euro session close at 1130am because of the federal holiday in the UK (end of Summer Bank Holiday)

– We heard a national hurricane announcement for Earl, but the market didn’t react, so we may see more from hurricane Earl later this week.