February 28, 2011
- in Uncategorized by schooloftrade
Day Trading with Trend Lines on Gold and Crude Oil earn us easy profits
820am est
– We realize it’s the end of the month and a Monday
– End of month MAY result in unexpected volume drops and increases, as traders get out of, or into new position to finish off the month or get next month started.
– We’re day traders so we’re always flat overnight so this type of information is only useful for keeping an eye on the POTENTIAL for a rough day today.
– Im not going to throw in the towel yet, so lets wait and see what today has in store.
835am est
– We have personal income comes out slightly higher than expected
– The dollar is dropping to new lows this morning, which should result in higher prices on the markets we trade most.
845am est
– We’re seeing a wedge within a wedge on the 34range crude oil chart
– We’re trapped inside the space between the two support legs of the wedge.
– We want to be patient here and wait to buy at support.
– Beware the middle of the range around 98.00 and sell the highs and buy the lows.
920am est
– We notice that the momentum on the 13range crude oil chart has gone from overbought to oversold VERY quickly.
– This tells me that we have NO pressure strong enough to keep the market moving in any direction for very long
– We then open the average true range on the crude oil and we get confirmation of this concern.
– We see lower lows and lower highs on the 3minute average true range chart
– This now tells us a LOT about what to expect
– Narrow trading ranges, end of the month, slow and inconsistent speed all tells us a story, one that MIGHT end in big losses if we don’t pay attention.
925am est
– We notice the crude oil getting comfortable in the same nasty range-bound market from end of Friday.,
– We’re trying to look at the BIG picture to find the best possible LOCATIONS to look for a trade.
– Buy 97.00 but it’s a tough spot, and I can sell 97.65 but it too is in a tough spot.
– The best location is to buy pullback above 98.00
– If price drops
945AM est
– We have news come out, but today has been very slow so we’re trying to find the BEST trading opportunities.
– What if price rises? Where will we trade? We will sell the resistance of 97.65
– What if price falls to new lows? We will buy 97.00 the low of the channel.
1015am est
– Gold has been very slow all day today
– We now see flat trigger lines on ALL timeframes
– We also see each trigger line is at the same price level
– This tells us the market on gold is flat and has been flat for quite some time today.
– We want to see a steep SLOPE to the trigger lines.
– We want to use a difference in the price values for each trigger line.
1015am est
– All the news is behind us
– We now have to be careful that the speed of the markets don’t get TOO slow so we get into a bad trade
– Next we see now on crude oil that we are trading right in the middle of the nasty choppy price action from Friday
– Crude oil trades slowly around 97.50 down to 97.35
– We need to be very careful trading around this area.
– Where’s my next pattern going to be high %?
o Sell 97.60
o Buy 96.71
o Stay away from the middle of these two extremes
1113am est
– We have the market personalities VERY slow and sluggish
– We were expecting to see a sluggish end of the morning b/c of the end of the month
– We have hit our profit goal for the day today
– All the GUESTS and the MEMBERS have their min 30 ticks of profit
– 150 ticks per week
– We don’t want to give that back, so move to a demo on the FTM
– We’re seeing dropping ATR
– And we’re doing our best to wait patiently for the 1130am EST European close.
– If you were looking to make more profit today you would ALWAYS wait for 1130am
– If you’ve hit your goal, not that important.
– I like to LISTEN to how the market reacts around 1130am when the euro markets close down.
