day trading strategy consumer sentiment and GDP

Our day trading strategy this morning begins with the dollar index, and we use the faster timeframes to find the short term trend and the major turning points in the market.

The first thing we see with the dollar is the price wedge, and inside the range from thursday tells us this wedge is a BIG RED FLAG of sloppy, sideways, and consolidated price action on the markets we trade most.  This can quickly change to a trending market, but beware trading will be higher risk until this wedge is at least testing the highs or lows.

Dollar Index trading strategy

Crude Oil futures day trading strategy uses the 89-range chart to find the most important levels of support and resistance as well as define where our highest percentage areas to trade will be.

Crude Oil Day Trading Strategy

Now we use the faster 34-range chart to find the specific locations and the entry points we need for our trades.  We see the inside day, the price wedge major and minor, and we see levels of support below and resistance levels overhead.  With the inside day and the dollar in a wedge, we need to FADE the breakouts, which means as price rises we look to sell, and as price falls we look to buy.

If price rises we sell the wedge highs at 100.89 and then the PHOD 101.39.  As price is rising im selling first, and then if the buyers are clearly in control we can buy a pullback.
If prices fall we will buy the wedge lows at 99.40, the PLOD 99.23 and if the sellers are too strong we will sell retracements with new lower lows below the PLOD.  On the way down we will sell retracements taking profit at 98.55 and the trend lines as support around 98.00 where we expect to see buying opportunities at the wedge lows.

We finalize our day trading strategy for crude oil with the 21-range chart and it clearly shows us our specific entry levels and where we want to find our highest percentage trades this morning.  Buy the lows, sell the highs, avoid the middle.

The Euro currency futures are giving us a challenge this morning developing our trading strategy this morning with a strong bull price channel, and 2 major trigger zones above us, which give us a clue the overhead resistance is going to be quite strong.  We are inside the range from thursday so we want to buy the channel lows, and buy the PLOD as support. 

The key to trading the euro this morning will be waiting to sell below the PLOD and then buy the channel lows, and if price rises we want to sell the PHOD and sell the 1.3186, 1.3210, and 1.3224 resistance overhead.

Euro day trading strategy

The Euro day trading plan uses the inside day, the bull price channel and the price wedge as our guide.  Also remember the euro is tied to the dollar index, so look for the dollar to be moving opposite to the euro and when the dollar has room to ‘run’ so will the euro, so use the turning points on the dollar index for possible reversal points on the euro.