- in Uncategorized by schooloftrade
Day Trading Morning Prep Gold, Crude Oil, Dollar Index, Euro, E-mini Russell Futures
Looking at the news this morning we know its friday, so anything goes. we may see good volume, but with the end of first quarter apon us we expect to see the volume lower than normal. I may be wrong, friday’s can always be great.
News @ 830am will be vital to bring volume into the market. a FLAT (as expected) reading for GDP will likely get traders headed to the weekend early, but if its higher/lower than expected we may get some good moves off it.
The key today is watching for the best times when SPEED is the highest to look for trades, and that will most likely come around these two news events this morning, then see volume drop after 1030am est.
Lets look at the charts this morning…
The dollar index is trading sideways this morning, with no clear trend or direction. This tells me the market does NOT have a strong directional bias trading gold and crude oil.
- Price Channel in Pink trend lines
- Sideways market in white box
- Price Wedge in yellow trend lines
Its very clear to me that crude oil simply broke its bullish price channel, tested support at 105.00 and now is searching for direction.
will it keep going sideways? will price rise back into the price channel? will price collapse and go back into the wedge below us?
Im looking to buy the lows and sell the highs of the sideways range first, then keep an eye out of price breaking the highs or the lows of this range.
If price breaks new highs im buying pullbacks trying to get long into the lows of the price channel above 106.00. I want to ride this bull channel all the way up.
If price drops to new lows im selling a retracement and then keeping an eye on the price wedge HIGH at 103.00. I will buy 103.00 first, but would love to short the highs of this price wedge, which you can easily see defined on a 89-range chart 05-11.
The key today on CL 05-11 will be volume and consistant speed.
- Bullish Price CHannel Blue trend lines
- Sideways range in white box
- Major Support below us
- PHOD and PLOD
- Potential Wedge Pattern forming
We’ve just broken the bullish price channel in blue trend lines, so looking for long trades will likely be the higher % opportunity today.
anytime we have a bull channel, im looking to buy support if price drops below the channel.
I also see a sideways range from 1448.6 down to 1423.7, with additional support levels at 1419.5, 1412.6. We want to buy the lows and sell the highs of the sideways range.
If price drops below the lows, we look to buy the 19.5 and 12.6, and if price rises above the highs im looking to buy pullbacks above 1448.6.
if price rises, im looking to be in a long trade at the lows of the price channel.
I nice indication of an INSIDE TRADING DAY we see the PHOD and PLOD above and below us. we are trading inside the range from thursday, which tells us the traders are looking for something new to spark their interest.
With this sideways range, low volume, and a friday I use a pink trend line at the new swing lows to predict a possible price wedge forming inside this sideways range.
if we see a price wedge we want to buy the lows and sell the highs, avoid the middle, so depending on where the HIGHS of the wedge end up, we can make better trading decisions from there.
