day trading strategy with Dollar Index in the middle of trading range

Our morning routine begins each day with the dollar index, and this morning we can see some big red flags right away.  We have the dollar index in the middle of monday’s trading range, and inside a price wedge.  The price wedge tells us market personality and also tells us to wait for the highs and the lows of the wedge for the best price action.  We need to assume that with the current location of the dollar index this is going to be a sloppy morning until something changes.

Dollar Index Day Trading Strategy

Crude Oil futures are giving us four big clues this morning.  We can see with this 89-Range chart that we have the bear price channel, the price wedge, Outside day, and the double-top.  The price wedge is the most important thing we can use today, and we want to keep a close eye on the previous low of day because that is where the buyers and sellers will try and take control over the price action.

Crude Oil Day Trading Strategy

Our day trading strategy is further-defined with the faster timeframes.  This 34 range chart of crude oil shows us the exact locations we are looking to buy and sell.  Our members have this trading plan and this is how it applies to today’s crude oil market.

The final stop on our day trading strategy routine is with the 13 range for crude oil, which tells us more information on where price action will go if we get higher highs or lower lows.  We’re planning for anything today will bring.  What if price rises?  goes sideways?  what if price falls?  if price rises higher im buying pullbacks above the PLOD and then taking profit at the wedge highs and PHOD.  If price goes sideways we need beware sloppiness on top of PLOD and if price moves lower we can assume the buyers have failed and we will sell short below PLOD and expect the LOD to be re-tested .