crude oil inventories day trading strategies uses the dollar index

Each morning our daily routine is always the same.  We use the dollar index, along with multiple timefames to determine the highest percentage trading opportunities for the day ahead.  We formulate a simple day trading strategy, and then we wait for price to come to us so we can execute our trading strategy with confidence.

We begin our day trading strategy with the dollar index, which is intended to find the short term trend and major potential turning points in the market.  We use the dollar correlation all day long, and it can change quickly, so be sure to learn how to use the dollar index correlation.

We’re seeing a long term bear price channel along with a short term price channel.  We can see the A, B, and C Levels on the channel, giving us support at 78.335, and we can see the short term sideways trend marked in the red box.  If the dollar index falls we expec the support to hold at the lows, so looking for selling opportunities when the dollar is rising off support.  if the dollar rises higher we will look for the DX to fall at resistance 78.770 or then move higher to the channel highs when we expect it to reverse as well.

Dollar Index Trading Strategy

Crude Oil day trading strategy begins with the slower 89 range chart and we can see three big clues comming into play immediately.  we’re above the previous high of day from Tuesday so the buyers are currently in control.  remember if price moves back below the PHOD I want to sell below tuesday’s high of day as the buyers will have failed.  Second, we have a bear price channel and we can see the A, B, and C levels so we’re waiting for the price to test the 100.71 for the reversal off the channel highs.  Third, we have a trigger zone with resistance at 99.00 by taking the swing high 101.29 down to the swing low 95.44 and calculating our trigger zone.  So we have three different reasons to look for selling opportunities if price falls below 99.00.  On top of all that we have a price wedge so we want to sell the highs and buy the lows of the wedge.

Crude Oil Day Trading Strategy

The Crude Oil 55-range chart gives us more specific locations for us to look for trading opportunities this morning.  Our day trading strategy says to sell the channel highs and then sell the Channel Resistance at 100.71.  If price is very bullish we can watch it move through 100.71 and then after waiting for the fake-out breakout we can buy a pullback above 100.75 and then take profit at the range highs around 101.30.

The big winner will come with the selling opportunities below the PHOD 99.15 and if we can get below the 99.00 we look good for selling off to 98.50 and then look for new lower lows below 98.27 and then sell retracements all the way down to the wedge lows at 96.25-96.50 area.

The crude oil futures day trading strategy looks relatively simple.  As price rises im being careful not to buy into the wedge and channel highs.  We realize that the Dollar Index may be falling to new lows and this may be tough to avoid trading into the highs of this channel, so wait for the buyers to fail and then look for the price reversal when we can see at these highs.  If price falls off these highs of the wedge and the channel we look to sell below 99.00 which is below the PHOD and below the major support which was found on the 89/55 range charts.

Look for price to move from the PHOD all the way down to the PLOD is the crude oil inventories come out higher than expected and with lower demand at 1030am est this morning.

Crude Oil Day Trading Strategy