June 3, 2010
- in Uncategorized by schooloftrade
futures day trading strategies im watching right now…gold, crude oil, aussie dollar and more…
Hey guys, we had another great day in the live trade room looking for live trades on various futurs contracts.
congrats to our members who made money today with us, as well as our new members who joined today, we look forward to seeing you each day in our live trade room!
im reviewing the futures markets we day trade, and here is what im watching….
I always start with the dollar because the dollar moves everyhing else, so we need to look at dollar index futures contracts first.
I can see the dollar is trading at the high of day, which we call the ‘extremes’ and this means we can look for the DX Pattern Set-up.
My trigger on my dollar will be ABOVE 86.600 up to 86.700
Please notice that my slower timeframe chart on the left has double-bottom @ 86.715 so I will look to avoid holding a trade through that area unless the trade is protected and profitable already.
So look for the dollar above 86.600 but no higher than 86.700 unless you already have your stop moved to entry to eliminate the risk and you are simply holding a trade through this area.
Look to take profit @ 86.700 and then 86.829
Now we know our targets on the dollar, lets look at the markets we will TRADE when we see the dollar index trigger.
im watching the Aussie Dollar Futures contract…
I can see the aussie dollar, one of our favorite currency futures contracts is also trading at its extremes, which means we have a potential DX Pattern SHORT on this futures market.
Notice we have 8424, yesturday’s High of Day, so i will look to get BELOW that level for this trade, and I see support @ 8426 and 8408 and 8401, so lets get below 8400 the big round number to make sure this trade is highest percentage it can be.
My entry will be below the 8400, closer to 8395 (5 tick rule around big round number) with a profit target of 8370 and 8300 for a long term hold.
get us below 8400 and we should see wide open trading range for this short day trade to work wonderfully.
Im also watching the Canadian dollar & the yen, but my futures data for currency futures seems to be sluggish, either because of my remote location, or because their is something wrong with our charting data. Ive already contacted my broker and i will let you guys know as soon as I do.
we’ve done exceptionally well on our currency trades the last few weeks, lets try to add some day trades on commodity futures contracts such as gold and crude oil.
lets start with crude oil because I can see its near its extremes, which is always a great thing for us to see…
Im looking at a 144-minute chart of the crude oil futures and we have a nice 2-step pattern setting up as we finish our day today.
Look at all the opportunity to the downside on this very sideways and range-bound market.
we can easily expect to see crude oil test its lows again if the sellers can take over control. we know when the sellers have control by looking for a break of the lows at 71.65.
if we can get below 71.65 we will have the buyers on the run and people adding to their shorts with the longs getting stopped out with sell orders piling onto our winning position to the downside.
Lets grab the crude oil fuutres short below 71.65 and look to take profit at the big round numbers on the way down.
You can also read the tape, if you see big sellers into the big round numbers such as 71.00 and 70.00 you can be confident to leave some profit in the market and look to make some more money on the way down.
I will expect a bounce @ 69.20 as profit taking occurs and we see support at those lows, but look to hold the entire short position all the way down to 67.18 for a massive 450 ticks and a month-makerfor any day trader, no matter what your futures trade account size.
Look to place your stop loss above the most recent swing high level, and feel confident using the medium timeframes for your stops as well.
remember, these great trade patterns work on ANY timeframe, so lets take a look at our 30 minute day trading chart of the same market, crude oil futures…
As you can see we have a very similar pattern on a faster timeframe, looking to get short below 73.42 with profit targets of 73.00 and 71.68.
It doesnt matter which timeframe you chose, just make sure you follow the rules we will review in the trade room tomorrow morning, or log into your advanced course.
How about the gold futures?
I opened a slower timeframe chart on the gold futures to take a look and it appears we are in the middle of a wide sideways trading range on this 144-minute chart.
it helps to use a slower timeframe, some call it an ‘anchor chart’ to help see the big picture of the market.
This birds-eye view allows me to see the longer term trends, and you can easily see that the gold futures contracts are probably going to have a rough and tumble time in the short term until they can get some traction in one direction or the other.
Look for us to stay cautious on the gold until we see it back at its extremes, its highs or lows, and when it trades in the middle like it is right now, we look for 2-step patterns as scalpers and day traders until we see the market work itself to its extremes.
I will review this in the live trade room tomorrow @ 745am EST, dont miss it 🙂
