Gold and Crude Oil Futures wedge pattern day trading strategy

Today is a holiday with the bond markets closed, so it’s a little tough to know what to expect. We usually see decent volume, but the volume is definitely going to be lower than usual. Low volume days require a little more patience, and waiting for the best time to trade.

– Increasing speed
– Perfect momentum
– Lots of big money on the time and sales window.

845am EST

– I’m watching the dollar index first today

o Size of the trading range
o Define “inside day” or “outside day”
o Define the trend

 Slope of the trigger line

o Identify the sideways trading range

Reviewing today’s dollar we see three red flags to cause us to used caution:

– Narrow trading range
– Outside day, turned inside
– No trend / sideways market

915am EST

– Crude oil futures trading sideways off the highs from last week and in the middle of the larger trading range
– We don’t have much of a bias because we’re trading right in the middle
– Looking to buy the lows (support)
– Looking to sell the highs (resistance)

1025am est

– Gold futures trading at the highs of the wedge pattern, so we have two options for trading opportunities:

o I can trade the breakout above 52.6 with profit targets of 54.0, 57.0, 58.5, and then 62.0 for the hard final target.

o I can sell the highs of the wedge with entry short below 49.7, and profit targets of 48.5, 47.5, 45.5 soft, and then all the way down to the major support at 42.8 for the hard target.

– Gold update: we noticed support at 1348.6 is just below our potential entry, so this becomes higher risk with less than 12 ticks of room for this trade room for this trade to run.

1100am EST

– Crude oil futures are trading flat in the middle of the trade range from this morning, and we don’t have many options at this time, besides the breakout below 82.00, the big round number.

– Entry short below 82.00 with profit targets of 85, 75, soft 81.45, and then all the way down to the hard final target of 80.85 (trend line on the 13range chart)

– Gold futures after the big winner short from 49.7 we are looking to buy these new lows with a 2-step reversal pattern above 49.7

– Profit targets of 50.8 P HOD, trend line as the 2nd target around 1352.0, soft 54.0, and hard final target of 58.5 1/4