- in Uncategorized by schooloftrade
Day Trading Euro and Crude Oil Futures
830am EST
– We’re trading the 10-10 contract after contract rollover last week
– We can see a massive ‘horseshoe pattern’ on our 34-range chart
– And we can also see that we have tumbled all the way off the highs of 83.00 and now here we are trading at the lows around 73.00 to define a massive sideways market.
– We define a sideways trading range from 74.29 down to 73.55
o Sell the highs of 74.29, and buy the lows of 73.55, this is the best way to trade a sideways market.
o If we can break out of this sideways market, we will buy above 74.40 to clear the trend line above, and then we will be sellers below 73.55 for a breakout to the downside.
– We’re trading at the highs of the trading range at 74.29 and we just popped our head out above the trading range, only to run into resistance overhead form the trend line.
– Now we’re looking to sell short below 74.29 when the price re-enters the bracket below 74.29.
9:30am EST
– Gold is coming off all time highs from last week
– 34-range chart shows 2 things of concern:
o We just broke below the bullish channel, so we need to wait patiently for a short opportunity below 1223.7 is the earliest opening
o We are in the middle of the sideways trading range from 1235 down to 1223.3, so we need to be careful trading in the middle
– Best options right now appear to be above 1234.0 for a long trade, or below 1223.7 for a short trade.
– Right now at 1226.3 we have to wait for a better situation to trade.
– The Russell made a nice big move down from the highs of 615, but we had a hard time getting into the trade because of the location.
o once we broke below the OPEN/CLOSE of the day (which we avoid) we went right to the middle of the trading range, and now we must wait.
o Avoid the middle and wait for the Russell to test the highs or the lows, or wait for a breakout
– Entry short will be around the highs of 609.4 using a 2-step short pattern
– Entry long will be buying the lows at 600.5 and using the trend line as support
o I like the 2-step long because that trend line at 600.0 will really help as support.
– Don’t forget we can also sell short below 599.0 just make sure we get below the trend line
– And we can buy the breakout above 60.9.4 but just remember we have the OPEN/CLOSE directly above those highs, so expect the market to go back to sleep.
– We can see the Euro trading around the SAME price level from last week, so lets use the same brackets from last Thursday and Friday
– Looking to buy above
