Day Trading Strategies for Dollar Index , Euro, Crude, Russell and Gold futures

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We begin our day looking for reactions to the ECB news overnight, and we remind ourselves to fade the reations to this news this morning.  So if we see big pops up, we then will sell for big drops down, and vice versa.

*Our day trading strategy this morning uses contact rollover when the volume on the front month we are trading is less than that of the future contract front-month.  We will have contract rollover for the russell and e-mini ES this morning only.  Expect the Dollar Index, Euro, and other markets to roll over on Monday*

We begin our day trading strategy with the dollar index, using its strong correlation to the markets we trade most.  The dollar index is used to find major turning points and the short term trend.  There is no short term trend on this 13 range chart this morning, so directional bias, and we can easily see the highs and lows of the channel and the wedge as the major turning points.  We know that the best trading opportunities will come when the dollar is at major support and resistance, or major turning points.

Crude Oil Futures failed to re-test the 102.00 highs from earlier this week and now we have a well-defined price wedge which is the most important clue we get this morning.  We also see inside day with LOTS of support trend lines below the PLOD.   We want to buy the lows, sell the highs, and avoid the middle of this price wedge.  if price rises we sell wedge highs, and if price falls we buy the lows.  if price keeps making new lower lows we can sell below 97.13 and then take profit at the next support level below at the highs of the trigger zone.

Crude Oil 34 range chart shows us many clues that give our day trading strategy a lot more confidence moving forward.  We see the Price wedge and we see multiple double-top patterns, which tells us where the major support and resistance levels are at this time.  If price rises im selling the wedge highs, and if we break above the wedge highs we buy pullbacks up to 99.65 into the trigger zone (resistance) overhead.  If price drops we buy the lows of the wedge, and buying the support levels below it at PLOD 97.59, 97.32, 97.13 and 97.00 are all support we need to buy.  We have the double-top support levels at 96.85 and 96.25 so buying the 96.85 and selling it with a retracement below .65 down to the .25.

The Euro day trading strategy includes using this price wedge, inside day, and major support levels below us.  Remember the dollar correlation will also be very strong on the euro at all times.  As price rises im selling the highs, price falls im buying the lows, and trying to avoid trading in the middle of the wedge.

The mini-Russell has contract rollover today, and our day trading strategy this morning uses the double-tops and the price wedge as our most important clues.  As price rises im selling the wedge highs and the double-tops as resistance.  If price falls I want to be a buyer at the lows of the wedge, the Double-Top Support 707.0, the High of the trigger zone at 703.0 and the lows of the trigger zone at 693.0.  As you can see, there is very little opportunity to sell until we get below 693.0 so stay patient looking for the price to reverse off support, and use a 2-step patterns.

Russell 34 range chart defines our day trading strategy this morning.  We see the short term price wedge so sell the highs, avoid the middle, buy the lows of the wedge.  We are inside the range from Thursday and notice the SELLERS failed below the PLOD just after the day began this morning.  This tells us to expect price to test the PHOD 749.5.  We also see a double-top and that we have tested and held the DT support levels 723.5, 716.0 and this ALSO tells us to expect a re-test of the double-top around 749.5.  As soon as price gets above 29.0 (chart type-o) we will buy pullbacks looking to bring price up to the trigger zone above us, and then up to the trend around 745.0 where we will look to take final profit.  Then SELL the highs of the wedge and bring it back down!