April 21, 2011
- in Uncategorized by schooloftrade
Day Trading Morning Prep Gold, Crude Oil, Dollar Index, Euro, E-mini Russell Futures
‘We are what we repeatedly do. Excellence, therefore, is not an act, but a habit’ – Aristotle
Let’s begin our morning routine with the economic news for today’s trading session.
8:20 Gold & Currencies OPEN
8:30 Jobless Claims
9:00 Crude Oil OPEN
9:30 US Market OPEN
10:00 Philly Fed Survey
10:00 Leading Indicators
10:30 EIA Natural Gas Report
11:00 Transition into Lunch
11:30 European Close / Live Webinar in our Trade Room
Looking at the news this morning, we see jobs report early today, which will hopefully get this market moving in one direction 🙂 We have nothing on friday because of the Holiday, and we see the friday news is now today, so this is a little different than normal.
There’s two ways of looking at a day like this. Its going to have more volume than normal because of all the news, however, the news is NOT in its ‘normal’ time/day so this may have traders looking for a better time to trade. We will set our alarm around these events and plan our day accordingly, thats all we can really do.
Either way, I’m watching the speed or the orders coming into the market along with average true range (ATR) to find the best times to trade the markets today.
Lets take a look at the market’s we’re trading today…
Crude Oil Futures
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| Crude Oil 34range |
Let’s review our crude oil this morning:
– Open the 89range chart and see three distinct patterns:
o Price Wedge
o Price Channel
o Sideways Range in the box
– We are above the wedge below us from earlier week
– We’re above the sideways range from earlier this week
– We are in the middle of the bullish price channel (not at the highs or the lows)
– Im going to now use these three patterns as my guide when planning my day on crude oil.
– Open your 34range chart and you see the following:
o Sideways range from 112.48 down to 111.69
o We see the STRONG bullish channel in pink trend lines
o We also see that we have the MAJOR sideways range from 110.68 down to 105.79 right below us
o The previous price wedge is below us, with the highs around 109.00
o The PHOD is above us, and we are trading INSIDE the range from Wednesday
o Inside day = nothing has changed = expect see the sideways ranges HOLD…until something changes.
o Look where the Big Money Trigger Line is….all the way down at 109.00
o We look for price to be attracted back down to the BMT
o In preparation for what MAY come our way today we look above us for the most important levels of resistance
o These will be my final profit targets today, or places to sell the highs.
Let’s plan our trades on crude oil today:
– Sideways ranges are the most important
– Inside day = expect sideways ranges to hold
– Buy the lows at 111.69, sell the highs of 112.42
– If price rises:
o Im selling first, and then buying pullbacks with new higher highs
o I don’t buy the highs, don’t buy resistance (buy support)
o Selling 112.78, selling 113.0, selling 113.56 and 114.0 at the highs
o As prices are rising im buying pullbacks if the sellers fail.
– If price falls
o Im buying first, and selling retracements with new lower lows
o Buying 111.69, buying 111.00, 110.82, 110.68 is the highs of the range below us
o I don’t sell the lows, I don’t sell the support, I wait for new lows and sell retracements.
