- in Uncategorized by schooloftrade
Day Trading Morning Prep Gold, Crude Oil, Dollar Index, Euro, E-mini Russell Futures
- we bounce off support and price rises
- we break support and price falls
Crude Oil appears to be searching for direction this week as we finish up the first quarter of 2011.- Price wedge in yellow trend lines
- Sideways trading range (three of them)
- PHOD & PLOD Levels
- Dollar Trending Down
The first thing I see on this 34range chart is the price Wedge Pattern in thick yellow trend lines. HIgher lows and lower highs make for this simple price pattern.
Trading wedges are easy, Buy the lows, sell the highs, and avoid the middle.
Im going to sell the highs of the wedge, as well as the levels immediately above it. Selling 103.45, 103.75, 104.00, 104.13.
Im buying the lows of the wedge, as well as the levels right below it. Buying 102.58, 102.00, 101,92
The first job will be to trade INSIDE the wedge, buy the lows sell the highs, but if price breaks out of the wedge we need to know what to do.
- 104.42 – 101.00 Large / Long term
- 104.13 – 102.58 Medium term
- 103.17 – 102.51 Small / Short term
Gold Futures appear to be taking their cues from the dollar index this morning, coming to a stall at the highs, after the dollar bounces off support.- Price channel in thich yellow trend lines
- Price channel in dotten orange trend lines (short term)
- Sideways range in white ‘box’
The thing I see first is that we just broke out of two price channels, the massive bearish channel in yellow and the short term bullish channel in orange.
We appear to have lost the bullish move up when the DX 06-11 ran into support, and now we have price trading sideways.
First, im going to trade the sideways range, buy the lows and sell the highs.
Buy 1423.8, 1425.8 and sell the highs of 1423, 1433, 1435, 1436, and 1437.
If price stays inside this range we will trade inside it, but look for the price to breakout eventually.
if price breaks this sideways range I have to assume price will try to jump back into one of these price channels.
Look to buy a pullback at support and try to get into the short term bullish channel above 1435.
Look to sell a retracement at resistance and try to get back into the longer term bearish price channel below 1423.8
