Day Trading Crude Oil Futures in a Channel Pattern, tape reading indicators Schooloftrade.com

Hope you had another profitable day with us in the live trade room, and now its time to review some of the most important information you need to know as a day trader…

Serious traders need to know this stuff…click below to watch the video…and don’t forget to send us your feedback.

– What are some challenges when it comes to trading a channel?

o How do we trade a channel?

 Same way we trade a sideways market or any sideways trading range

• Sell the highs and buy the lows

o Knowing when the channel has been broken, and when it’s nothing more than fake-out breakout.

 Define the sideways range inside the channel to see where my entry will be on a breakout

• Find the highs and find the lows and then look to get long/short as FAR AWAY from that channel as possible.

– Trading with a daily goal

o Day traders, scalpers they all should know what their daily profit goal is and what their daily loss max is going to be.

 My goal with 4 contracts = $1,000usd, then ill move to a demo trade
 My max daily loss is 2 stops

• Not when I exit early
• When I get stopped out 2 times

– How do we know whether to sell the highs or buy the breakout of above the highs?

o Watch 3 different technical indicators to tell me what to do:

 Buy the highs:

• Momentum curls up from the bottom (oversold territory)
• Speed is increasing into the highs
• Big Money BUYERS at and above the highs (time and sales window)

 Sell the Highs:

• Momentum is overbought or pointed down
• Big sellers at the highs, no big buyers
• Speed is slowing down into the highs

– How to use the Pace of Tape Indicator

o https://www.sidewaysmarkets.com//2010/07/22/pace-of-tape-technical-indicator-for/

o Measure the speed of the orders coming into the market
o Use a Pace of Tape template to make sure that your POT indicator is the same as mine.

– When is the dead zone?

o A very slow time of the morning when day traders need to be careful
o Typically from 1030-1130 in the summer
o After the morning news and before the Euro session closes.

– Trade Management on different chart timeframes

o When I’m taking scalp trades I use the same trade management for every trade I take

 All this info is in the beginner’s course

o When I take day trades or position or swing trades I will use different trade management

 I use the swing highs/lows, trigger lines, and candlestick pattern to determine my stops and targets for my 13, 21, 34, range chart trades.

– What’s the most you’ve seen the market move?

o Most I’ve ever seen on Wheat futures during the credit crunch

– Change chart properties or the timeframe of the chart

o Right click = Format data series for the chart info
o Right-click load template for your chart templates.

– Preparing for a trade that’s coming

o Make sure I’m prepared on my slower charts

 13 and 21-range charts I need to look for the most important levels, trend lines, and patterns
 Then look for patterns on the fast timeframes

o When I see a pattern I do the following:

 Check the time, do we have any news?
 Check my rules

• Review them all, looking for momentum and size/speed to trigger last.

– Using our momentum indicator

o Real easy to understand, but can be misleading in the heat of battle
o Example: looking for a long trade and momentum is pointing up but overbought
o Example: look for a short trade with momentum pointing down but oversold
o During the slower month of August we can use MULTIPLE timeframes to confirm the entry

 Watch for the pattern on the 13range chart and then look for BOTH the 13 and 21 range to confirm your entry.