- in Uncategorized by schooloftrade
Day Trading Morning Prep Gold, Crude Oil, Dollar Index, Euro, E-mini Russell Futures
9:00 Crude Oil OPEN
Looking at the news this morning we have word from Saudi Arabia that it has increased production of crude oil this morning to compensate for lack of supply in the middle east.
GDP is expected this morning, so the markets will certainly be watching that time closely, so will we. Set your alarm 5 minutes before the news and then wait to see the reaction after the news is released at 830am EST.
Today is a friday, so we will also expect volume to drop earlier than other days of the week, so expect the lunch hour to set in around 11am EST, about an hour earlier than usual.
Lets take a look at the charts we’re watching today…
- wedge pattern blue trend lines
- price channel in pink trend lines
- Big Round Number of 100.00
- Previous Low of Day & Swing Highs from this morning
Gold looks similar to crude oil this morning, trading off the highs from thursday and now in a narrow wedge pattern looking for some more direction ahead of the 830am news.- Wedge pattern in trend lines
- Sideways market
- Big Round number 1400
- Previous Highs and Lows
The wedge is our first concern, we need to Buy the lows, sell the highs, and avoid the middle of this wedge, and you can see its getting very narrow, so we may not get the opportunity while we are inside this tight range.
Keep an eye on the big round number of 1400.0 its sitting just below the wedge, ready to take our money with sloppy price action, so try your best to beware trading around 1400.
The sideways market will be out best bet for trading opportunities early this morning. Look to sell the highs and buy the lows of the range, so im selling 1418.8, 1416.5, 1410.4.
On the flip side, im buying at support levels at the lows of 1386.3, 1392.2, 1395.2 using our omentum indicator to confirm when the price will hold at support.
- Dollar Corrleation
- Wedge pattern
- Previous day’s HOD and LOD
First, we watch the dollar, if its rising or falling to tell us which DIRECTION to be looking for on the euro.
We want to sell the of the price wedge, if the dollar rises, we want to sell below 1.3764, taking profit at support on the way down at 1.3746, 1.3701 (PLOD), and 1.3600 all the way at the lows of the price wedge.
If the dollar keeps falling, prices will RISE on the euro, and we want buy a pullback above 1.3856 so we can get into a trade at the LOWS of the bullish price channel in pink trend lines.
if price drops without me being short, im looking to buy at levels of support, focus on the PLOD around 3701.
