day trading strategy for futures

Our day trading strategy this morning begins with the dollar index futures, and we start with the 13-range chart which will show me the short term trend and help identify major turning points in the market.

The dollar index 13-range chart shows us trend line support, which has created a price wedge, as well as the previous day’s range and the OPEN are both above the current price.  We expect the price to rise at support, and if it does NOT that tells us a BIG clue that the dollar index will likely go down to the next support at 80.735.

We will use the dollar index clues to help detail our trading strategy.  If the dollar rises off this support I am selling retracements and using a 2-step pattern short on the crude oil, euro, gold, ES, anything you want to trade.  If the dollar breaks through support we then know the USD is very bearish and therefor we want to buy pullbacks with new higher highs on crude, euro, etc.

Our crude oil day trading strategy uses a slower timeframe first to find the big picture, and then we zoom in using faster timeframes to narrow down the specific entry locations and times in the market.

We begin with the 89-range chart which shows us 90 days of market data, and helps find the overall trend, the major turning points, and the advanced price structures.  We can see an AB=CD Pattern, a Price Wedge, the Trigger Zone (103.73-97.70) and an Outside Day above the PHOD.

I want to sell the wedge highs of 101.75 area, and look to sell below the PHOD 100.30 with the target down at the PLOD 98.83 and the wedge lows.  If the buyers fail above the PHOD this is a HUGE clue and we are selling retracements below the PHOD as the highest percentage trade at this time.

Remember if we miss the short below the PHOD beware trading around 99.50 the BMT and middle of the wedge/range below us.

If price rises higher I will sell wedge highs, sell the 101.50 trigger zone highs, and then buy a pullback if we go higher than the 101.50 taking profit at the highs of the wedge around 102.60.  Then i will sell the wedge highs and try to bring it back down.

if price moves lower i will sell below the PHOD, avoid the re-entering around 99.50 and then take profit, or look to buy the PLOD and the lows of the wedge.  I will be looking to sell short term below the PLOD however I need to buy the wedge lows starting at 98.50 area all the way down to 97.70.  If we go below 97.70 I will look for a fake-out breakout first, and then with strong selling pressure i will then sell a retracment down to 96.80.

The day trading strategy on the euro currency futures begins with the 89range chart and we see the bearish price channel, the outside day now failing, and the trigger zone resistance overhead.  We can easily speculate the highest prcentage trades will be selling below the PHOD with the target of the PLOD.

We will sell a retracement once price drops below 1.2740 on Euro and make sure we check our entry rules.

The faster 34-range chart on the Euro futures tells us the exact same thing.  Sell retracements below the PHOD with the final target the PLOD.  We are clearly seeing the sellers will not give up without a fight.  We cant quite figure the REASON the price isnt tumbling, but we dont care, we trade the reaction to the news and right now it tells us to be careful and wait for those perfect patterns.  Members, check your trade plan and your entry rules and trade carefully until this personality changes.

The Euro 21-range chart gives us a BIG Clue in the form of a price wedge.  Now we know that the short trades above 1.2700 will be higher risk because we are buying into trend line support.  We also know that the higher % trades will be below 1.2700 so wait patiently to sell retracements as price moves below 2700 area.  Furthermore, I want to buy now above the PHOD as it signals the sellers have failed and my final target for the long trade will be 2765 the high of the trigger zone from swing high 2812 to swing low 2713.