February 8, 2011
- in Uncategorized by schooloftrade
Buy the Lows on Crude Oil and buy pullbacks at new high of day using token prints for price reversal
The new momentum indicator is available for download and the chart template is also posted (Fast2)
Load that to your 21range and 13range charts and then make sure the indicator are pointing at the correct chart timeframe.
We will be doing training on Wednesday @ 1130am est
840am EST
– The dollar index is trading in a wide price channel, and the big picture says the dollar should drop
– But the price action tells us a little different story
– Slow speed and dropping average true tells us the dollar is looking for some direction today
– If the DX lacks direction that will mean lack of direction on other markets.
– Higher highs on the atr from Monday = good things
– But the lower tell us that this market has been getting narrower by the day.
845am est
– Watching a wave pattern long on the GC 04-11 13range chart, but the speed is so slow that is makes it hard to feel
855am est
– We took our first trade on the gold wave 13range and it went up 10 ticks and then came right back down to stop us out.
– +10ticks on the trade, and now we’re looking for the wave failure or the 2step short.
– We’re looking for another wave entry, but the 21range chart shows us why this 2nd entry will be much her risk.
– We are trading right into the highs of the price channel at 1365.0
– We need to SELL THE HIGHS, not buy into them.
– If we do break new highs, we will wait to buy a pullback.
915am est
– The markets are quite slow right now
– With no news today and with Bernanke testifying tomorrow, this may be something people are waiting for.
– The crude oil market is very slow this morning and for a few reasons:
– We found ourselves after BIG DROP the last three days now we sit on major support, trend line from a month ago.
– At the lows of the price wedge, we want to buy the lows, and sell the highs
– But we sea a strong trend in blue coming down from the highs, so we need to be careful.
– I don’t want buy into the highs of the short term wedge from 87.00 down 86.00 so keep an eye on the resistance overhead.
– The best spot to buy is down around 86.00 then hold that trade taking profit at the highs.
– Right now we’re in the middle, getting closer to the highs of 87.00
– Im going to sell 87.00 first, and then look to buy above 87.00 with a pullback if w break that level with new highs.
950am est
– We continue to see signs of weak price action on the crude oil market
– We took our profit earlier on the last two trades b/c of this concern and it looks like those concerns were warranted.
– The 34range chart does NOT look exactly the same as the 21range chart trend lines, so we have to be careful trying to trade the break of this wedge on the crude oil market.
– “Trend lines should be drawn with a crayon not a fine point pencil”
955am est
– The crude oil is trying to break the lows of the price wedge, and the trend line continues to hold.
– If we do break this trend line the short trade will be higher risk for two main reason:
o Momentum is oversold
o Trying to break a trend line and they can bo tough to know exactly when to enter the trade
1015am est
– We see another breakout on gold, but lacks the speed and the confidence to keep moving up.
– We used a scalping entry for the wave long and took +5 and -5 from the trade for a scratch
– This is the 2nd wave pattern that has not worked out for any profit
– All of our crude oil trades have been 30 tick winners, so lets use this make educated decisions later this morning.
