Crude Oil and Gold Futures Day Trading Sideways Markets Strategy

Our morning routine begins with the following:

• Check the news for today

• Now lets begin looking at the markets today

• I use multiple timeframes

o Slower timeframe shows me the bigger picture

 Weekly highs and lows

 Major levels of support/resistance

 I can find the best locations to trade
 Use my auto-levels to project those important s/r levels to my other timeframes

o Faster timeframe is where I use the important levels from the slower timeframe to know where to enter the market and where to exit

 Gets me less risk per trade
 Much more precise fills
 More trading opportunities this way

830am est

– I always begin my day with the dollar index
– Looking for a few things on the dollar

o Trading range

 Narrow trading range at new lows

o Relationship to yesterday’s trading range

 Narrower than yesterday
 New lows (outside day)
 Then came back into the range from yesterday (inside day)

o Any trend?

 Trend is flat
 Flat trigger line
 Double-top
 Consolidating into the low of the prev day

o Important support and resistance

 Mark the highs
 Mark the lows
 Wait for the breakout to signal when the market should be on the move
 Inside this narrow trading range the dollar will keep the rest of the markets moving sideways.

900am est

– We had news at 830am, jobless claims came out worse than expected, but the market didn’t show much reaction to this, leaving the markets still looking very weak.

– We took our first trade on gold futures for a fast track winner, scalp winner, day trade winner

– We notice that gold is settling into the trend lines on the 21 range chart, so we are clearly trading inside this wedge until the market breaks the highs/lows

o Buy the lows of the wedge
o Sell the highs of the wedge
o Don’t be afraid to play the breakout!

915am est

– The markets have gone to sleep on us, even after seeing the dollar index break its highs and then come back down into its trading range below.

– Crude oil has its inventory report @ 11am today, which is a day late and 30 minutes later than normal, so we are expecting the crude oil market to be a little different today. Use caution until after 11am est and the news released.

1100AM est

– We’ve seen the crude market move back up to the highs ahead of the news release, and then trade sideways at these highs after the news.

– Average true range on crude has made a nice rebound from previous lows, so we know that CRUDE OIL will give us more opportunities

– Current price action is choppy, and we need to wait for a better time to trade.