day trading strategies for Non Farm Payroll and Factory Orders News

Our day trading strategies begin every day with a very simple plan; start with the slower timeframes to find the most important levels of support and resistance, and then drill-down into faster timeframes to find more specific entry locations that enable us to use tight stops, reasonable targets, and get an idea of when the best opportunities will be each day.

This morning our day tradinf strategy begins with the US Dollar Index.  we use this find the overall market personality, the short term trend, and possible turning points in the market.  The Dollar gives us a negative correlation and we use that to make educated trading decisions each day.

The first thing we see on the dollar this morning is a BIG RED FLAG, screaming at us that we are in the middle of Thursday’s range, so inside day, and in the middle of the price wedge.  This can change quickly so we arent going to give up on our morning but we DO KNOW for sure that if this wedge does not get broken higher or lower this is going to be a higher-risk trading day and our strategy will be to stay very cautious and sit on our hands.

Dollar Index Trading Strategy

The Euro futures are highly correlated to the dollar index, and we have a very similar market structure and personality this morning.  we can see the major bear channel on the 89 range chart, but most important is the short term price wedge.  Buy the lows of the wedge as price falls, and buy the support levels of 1.3027 and 1.2933 if price moves below the wedge.  if price rises we sell the highs of the wedge and the resistance above the wedge highs at 1.3200 – 1.3254.  Only when price is strong and breaks new hew higher highs or lower lows will we then consider buying a pullback with new highs or sellign a retracement with new lows.

Day Trading Strategy for the Euro Currency Futures

The Euro day trading strategy is further-defined with the faster 55-range chart, and we now see where exactly we want to be looking for trading opportunities this morning.

The price wedge on the euro is the most important aspect to our day trading strategy and our 34 range chart defines exactly where we are lookign to execute this strategy.

Crude Oil day trading strategy uses the 89range chart to find the best locations for our trades this morning.  We see the bear price channel, the price wedge, the inside day, and we are in the middle of the trading range at this time.  As price falls im buying the lows as support, and as price rises im selling at the highs at resistance.  I will buy a pulblack above 98.00 when that resistance turns into support, and I will sell a retracement below 94.49 if the sellers appear to be strong enough.

Day Trading Strategy Crude Oil

Crude Oil Futures price structure and market personality give us some BIG RED FLAGS.  The Dollar Index sloppiness after 930am EST will be the biggest reason why the crude oil stays range-bound and risky.  We can see the big bear channel and the short term bull channel, but most important is the short term price wedge, and the fact is we’re in the middle of Thursday’s trading range and therefor this INSIDE DAY in the middle with slippery personality tells us to sit on hands and beware the market personality.

I will buy the wedge lows and the 96.00 if price falls, and then sell a retracement with new lower lows, then looking to take profit at 95.61-95.44.

I will sell the highs of this price wedge if price moves higher and I will sell the highs of the bull price channel and the highs of the range around 98.00.  I will then buy a pullback if we break above 98.00