December 9, 2010
- in Uncategorized by schooloftrade
Day Trading Morning Prep for Gold, Russell, and Euro futures
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Lets start with the economic news for today
08:30 US Initial Jobless Claims, Continuing Claims
10:00 US Oct Wholesale Inventories
10:30 DoE Natural Gas Inventories
10:00 US Oct Wholesale Inventories
10:30 DoE Natural Gas Inventories
I’m going to avoid the news today 5 minutes before and 5 minutes after.
Now lets see how the dollar index futures are looking today
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The dollar index futures are still playing with this bearish price channel, but the past three days we’ve trading above and below the channel, but never seeming to find price INSIDE the channel.
Now we have the USD holding above the highs of the price channel, and we notice an INSIDE TRADING DAY on the dollar.
Trading inside the range from yesterday is a sign of indecision. If the price has NOT broken new highs or new lows, the market participants on the dollar index are searching for something new to tell them future direction.
News events this morning at 830 and 10am est may be what the dollar is waiting for to find that direction.
The dollar index is looking for clarity, searching for conviction on the direction for today
We need to wait to see that direction, then we use the dollar index correlation to make educated decisions.
One way to make it easier to be patient and wait for the dollar to move first is to use the price alert indicator to mark the highs and the lows of the recent trading range.
When the alarm goes off you know the dollar is moving and a moving dollar will bring moving gold, euro, crude oil, Russell.
Crude Oil futures are trading at the lows of the price channel.
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As day traders, we LOVE seeing price at the highs or the lows of a price channel.
Buying the lows of the price channel is a common trading technique we use.
Yesterday the crude oil was in the middle of the channel, so we had sideways markets on Wednesday
Today we’re at the lows of the channel, so we’re looking to buy the support at the lows.
This is the LONG TERM chart, so day traders and scalpers looking at shorter timeframes will have long and short trading opportunities.
The higher percentage will be trading to the long side this morning.
Keep an eye on the trading range we are in currently.
Highs of 88.75 and the lows 88.0, don’t be afraid to buy the support of 88.0 and sell the resistance at 88.75.
We had a divergence method buy signal on the crude oil futures this morning at 755am EST.
Notice the 13r fired off long, then confirmed by the 4range firing off long with a 2-step pattern for your entry.
Gold futures are trading at the middle of longer term channel, and the lows of the shorter term price channel.
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We want to buy the lows on gold futures at the support of the lows of the price channel.
I also see a trend line coming overhead as resistance, and this creates a wedge pattern.
Buy the lows and sell the highs of the price wedge.
This wedge will be the major overhead resistance keeping this market from rising off these lows.
Look for the break of the overhead trend line resistance (1387)for a long term buying opportunity.
The market is trading sideways from 1393.3 down to 1373.0, so buy the support lows and sell the resistance highs.
Longer term traders will want to buy above 87.1, and shorter term day traders and scalpers can trade in either direction.
