Day Trading Morning Prep Gold, Crude Oil, Dollar Index, Euro, E-mini Russell Futures
 |
| Gold 89 Range |
The first thing I use in my daily prep is a slower timeframe to focus my attention on the most important information. Its easy to get distracted by various things on faster timeframes, so this is a great way to get started on the right stuff today.
You can see on this 89-Range chart of Gold Futures that not a lot has changed since Monday and Tuesday. We continue to see wedge patterns and a bullish price channel. Ive located some easy sideways ranges and will use these on the 34-range chart below to plan our trading this morning.
 |
| Gold 34 Range |
As you can see, we use a technical indicator to draw trend lines, and those are added automatically to our faster 34-range chart. This not only saves me TIME but limits my MISTAKES, which is a priceless tool for day traders.
This 34-range chart shows me many trading opportunities.
- Price Wedge in yellow trend lines
- Price Channel in Pink trend lines
- Sideways Range(s) in white box(s)
- PHOD above us and PLOD below us
- BMT is below us
- OPEN is above us
- Major levels of support/resistance above/below us
This information gives me the ingredients for our recipe for day trading success today. I want to use this price wedge as my guide first. Buy the lows and sell the highs of the wedge until its broken. If we break out of the wedge to the UP side we then will buy pullbacks using the bullish price channel as our guide (just like we did with CL on Tuesday). The bullish channel gives us a sense of sentiment, so looking for long positions will be higher % today.
Im also watching the sideways ranges that we defined on the 89range chart. I want to use these as a guide as well, Buy the lows, sell the highs, and avoid the middle of these ranges. If you notice, the PHOD is above us, and the PLOD is below us, making this an Inside Trading Day. Inside the range from Tuesday, we now want to consider this range to be our ‘friend’ buying the lows and selling the highs until the market proves otherwise. Trading ‘inside’ means we can trade inside the range confidently, ‘just dont fiddle with your middle! ‘:)
I want to avoid trading around certain levels today, such as the Big Money Trigger Line (BMT) and the OPEN of the day. The BMT is at 1503.0 below us, and the OPEN is at the highs of the wedge.
Ive also marked some major levels of support and resistance above and below price so I am prepared for battle today up or down.
With this information, my plan of attack will be quite simple today. If price rises im selling the highs of the wedge first, then buying pullbacks with new higher highs, keeping an eye on resistance levels overhead.
If price tumbles im going to buy the lows of the wedge, the lows of the channel, and the PLOD all in the same area of 1505.00. I will avoid trading around the BMT at 03.0 and 1500 big round number. If price can break new lows below the channel lows (below 98.5) we then start selling retracements with new lower lows, keeping an eye on the support levels below us.
