August 9, 2011
- in Uncategorized by schooloftrade
Crude Oil Biggest Profit of 2011; Who says you can’t trade Summer?
FOMC-Day means we need to look for early morning volume, and expect price action to get sloppy after 1030am est today.
It’s a summer trading day, so we expect lower volume earlier this morning, and with FOMC announcement at 215pm est this afternoon we know not to expect the late morning volume.
If there is volume late this morning we will need to be careful, it may be too whippy to grab hold of it safely.
Big Concern if the US Dollar Index starts to form a narrow price wedge. Its FOMC day so it will be a sign of sloppy and sluggish price action on the markets you trade most.
830am est
We broke new highs this morning and bought pullbacks for some easy profit.
Now we look for short opportunities below 81.95 area and sell the highs of the bear channel.
Buyers are failing if we break below 81.95
930am est
We wait for the US Market to open, very sloppy this time of the day so we stay patient.
We sold the failure of the buyers after taking a ton of ticks out of the market from 830-900am est this morning.
1000am est
We’re watching price sit on the 81.95 level which is the line in the sand between buyers and sellers in control of price.
If we make higher highs above this support level we then start buying pullbacks.
If we make lower lows below this level it confirms the buyers failed (again) and we will sell the range highs below 81.95 as a failure to make new highs. Target will be the lows of the sideways range.
1030am est
We’re seeing a change in personality, a lot slower as we go into FOMC day.
We are looking to sell short and test the lows of the trading range, the same plan of attack we’ve had all morning if we stay below the 81.95
1100am est
We’ve had our biggest day of the year 2011 over 470 ticks of profit, everyone making money and learning along the way.
Now its important we find the highest % trades and wait patiently for them to come our way.
If price falls im selling retracement below 81.31 taking profit at 80.91+5ticks (80.96)
If price rises i can buy a pullback above 82.00 however, i need to beware the overhead resistance and take profit at 82.25 area (trend line wedge highs)
If price rises above trend line resistance I will then sell the resistance overhead of the bear channel at 82.66 and 82.89
