November 18, 2010
- in Uncategorized by schooloftrade
Day Trading Strategy for Day Trading Gold and Crude Oil Futures at 10am News Release
Another exciting day we had our live trade room, another 300 ticks of profit, and now over $11,000 this week alone on only 4 contracts.
We didn’t have an easy day like yesterday, today we had to work a little harder to keep up with all the patterns, and we didn’t see nearly as many large winning moves, so the market’s personality was much different. that’s ok, we adjusted and made our money anyways.
This has always been my favorite time of the year to be a trader, and you can see our results are not letting us down.
Crude Oil Rollover to the next front month contract
The first step of the day is to check the daily economic news, and set our alarm clock around these events today.
Now lets check the dollar index futures because we have a strong correlation between the dollar and the market we trade.
830am est
– We’re waiting on jobless claims to be released
– The markets are bouncing off the lows this morning from earlier this week
– The dollar index futures have now broken the bullish price channel, and we can see a sideways range developing.
– We have an outside trading day (below the lows from Wednesday)
– Wide trading range (good)
– Speed isn’t that great, but we’re used to seeing slow speed at this time in the AM session, so we can be patient.
– Average True Range is rock bottom at the lows of the whole week, possibly the month. (big concern)
o Narrow trading ranges on the dollar = narrow trading ranges on everything else.
845am est
– The markets aren’t moving much, with the jobless claims coming in as expected
– The dollar hasn’t moved an inch, which is causing the rest of these markets to stay still as well.
– I noticed that I didn’t have a full 24:00 hours of price data on gold so I reloaded the historical data on my charts.
900am est
– Gold futures are trading sideways at the highs of the range and the highs of the price channel.
– We see gold drop to the lows, and we have two options
o Buy the lows, considering we have lots of support at 1352.0
o Or I can wait and sell the breakout short if we can break the major support level of 1351.7
