April 17, 2012
- in Uncategorized by schooloftrade
Crude Oil day trading strategy
We have the bear price channel and
the bear price wedge with a recent breakout of the price wedge highs. The bear price channel tells us the high-percentage
trades will be selling at resistance, and today we have overhead at price wedge
highs, 104.24, and the 104.45 lows of the trigger-zone overhead. If price breaks out of a price wedge we
ALWAYS look for the fake-out breakout first, so looking for the price to
eventually stall at these highs of the range and come tumbling back down to the
103.00 area today. Looking for wave
patterns that fail on the 21 range chart, 2-step reversal pattern at the resistance
levels overhead, and we’re looking for clues from the dollar index to tell us
when the market personality will be the best to trade.
the bear price wedge with a recent breakout of the price wedge highs. The bear price channel tells us the high-percentage
trades will be selling at resistance, and today we have overhead at price wedge
highs, 104.24, and the 104.45 lows of the trigger-zone overhead. If price breaks out of a price wedge we
ALWAYS look for the fake-out breakout first, so looking for the price to
eventually stall at these highs of the range and come tumbling back down to the
103.00 area today. Looking for wave
patterns that fail on the 21 range chart, 2-step reversal pattern at the resistance
levels overhead, and we’re looking for clues from the dollar index to tell us
when the market personality will be the best to trade.
We are trading OUTSIDE day this morning, above
the PHOD so we assume the buyers and sellers have determined that current price
is too cheap. Let’s see how higher the
prices will go before traders consider them too expensive. Outside day above the PHOD ALWAYS tells me to
look to buy price structure with new higher-highs, but the price wedge price
structure reminds me that fake-out breakouts are part of the game.
