February 29, 2012
- in Uncategorized by schooloftrade
Day trading strategy for crude oil futures
The day trading strategy for crude oil begins with the 89
range chart and we can see the bull channel and the price wedge that has formed
off the highs. We are trading inside the
range from Tuesday and we can easily see major support and resistance above and
below us. The 89 range chart seeks to
locate the most important levels of support and resistance.
range chart and we can see the bull channel and the price wedge that has formed
off the highs. We are trading inside the
range from Tuesday and we can easily see major support and resistance above and
below us. The 89 range chart seeks to
locate the most important levels of support and resistance.
The 55 range chart is a little faster and gives me more
information that I can use to find my price structures looking at the new bull price
channel and the trigger-zones as support below it. We also see the price wedge and the we are
currently trading in a trigger-zone at this time so look for price to rise
above 107.45 going to the highs of the price wedge, and if price moves below PLOD
we will get a test of 105.50 support so be ready to sell retracements.
information that I can use to find my price structures looking at the new bull price
channel and the trigger-zones as support below it. We also see the price wedge and the we are
currently trading in a trigger-zone at this time so look for price to rise
above 107.45 going to the highs of the price wedge, and if price moves below PLOD
we will get a test of 105.50 support so be ready to sell retracements.
The 34 range chart really defines our day trading strategy this
morning. We can see a bear price channel,
inside trading day, and a price wedge all giving us big clues. On top of the crude oil chart we have the dollar
index correlation which is also trading in a narrow range so expect fake-out
breakouts and fade-the-breakouts today until market personality changes.
morning. We can see a bear price channel,
inside trading day, and a price wedge all giving us big clues. On top of the crude oil chart we have the dollar
index correlation which is also trading in a narrow range so expect fake-out
breakouts and fade-the-breakouts today until market personality changes.
What if price rises? I’m
selling as price rises at the trend lines, trigger-zone resistance, and price
channel highs overhead. Even after we
break new highs above the bear price channel I’m still looking for the price
reversal and selling at the next level of resistance.
selling as price rises at the trend lines, trigger-zone resistance, and price
channel highs overhead. Even after we
break new highs above the bear price channel I’m still looking for the price
reversal and selling at the next level of resistance.
What if price falls? I’m buying the price wedge lows,
the PLOD, and then price channel lows as support. Keep an eye on the TIME when we break below
the PLOD we may have enough room to sell retracements below PLOD but beware
selling directly support at the price channel lows.
The
21 range chart gives us another big clue in the form of a double-bottom which
tells us there is additional resistance at 107.53 if price rises higher. This resistance is right nearby the price
channel highs and the 55range trigger-zone resistance.
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| Crude Oil Day Trading Strategy |
