Day Trading Price Patterns on Crude Oil Futures Setting Up Now

Lets Look for Patterns…

Crude Oil:

Crude Oil is trading in the middle of its wide trading range. We already missed the break of the head and shoulders pattern, which triggered over the news, oh well!

Now we need to wait for crude to set up for our next pattern…

We can’t trade the middle, so the breaker short @ 75.33 is too risky, let’s wait patiently for the extremes to be tested again, and then look to buy the lows or sell the highs

– Enter short using a 2step reversal when we re-test the high of this range @ 76.50

– Enter long using the 2-step reversal when we test the lows of this range, which is all the way down to 74.25
 

We notice gold trying to dig itself off the lows from earlier this month

– Looking to enter long to continue this trend to the upside above 18.2

o I will take half my profit at my first target of 25.0

o I will then take ¼ of my profit @ my second target of 27.5, and then my final target will get us all the way up into the sideways chop (middle) of the bracket above us.
 

– Entry long for a reversal off the new low of day @ 629.5

o Look for profit targets @ 32.5 (1/2), 36.0 (1/4), and 39.0 for our final ¼ of profit

– Enter short going with the downward trend using a breaker pattern below 24.5

o Look for our first target @ 21.0 (1/2), and then our next two targets of 14.5 (1/4) and 09.7 for a final ¼ of our profits.

– Keep an eye on this trade, this has some potential to start to move on low volume at the close of the trading session just like we saw last night.
 

The euro is trending up today thanks to the down-trend on the Dollar Index futures

– I don’t feel very confident in the long trade on the euro because we don’t have any levels to work with above us, so ill look for the sellers to run out of gas, and begin to roll over to the downside after this big move up.

o Entry will be short for a 2-step reversal @ 2854, and I will take my first profit target @ 2815, take half my profit at the first target and move my stop loss to my point of entry

§ Moving my stop accomplishes two things

• Protects my profit, locks in profit
• Removes the risk, no risk on the trade now.
• I never let a winner turn into a loser.

o I will then take ¼ of my profit off at each of the next 2 profit targets, 2785 and 2745.

– Very important!

o I think the major reversal below 2682 has the most long term potential because if we break below 2682 we have the ENTIRE trading range below us to fill, lots of profit potential.