April 11, 2012
- in Uncategorized by schooloftrade
Gold futures day trading strategy
We can see the major trading range on the 89range chart and
we are in the middle of this range. We
can also see the minor trading range which we will use as clear support and resistance
levels. We can see the bear price
channel and with that comes the bear price wedge.
we are in the middle of this range. We
can also see the minor trading range which we will use as clear support and resistance
levels. We can see the bear price
channel and with that comes the bear price wedge.
If price moves higher we sell the 1664.8 PHOD as resistance and
then with higher-highs we then buy pullbacks above the PHOD and take profit at
the 1677.7 and the highs of the bear price channel. If price moves lower off
these highs on gold we will sell retracements until we get into the middle of
the price wedge, then we must SOH and wait for the middle to pass it will be
too sloppy. If price tests the PLOD we
will consider this a transitional level of support. In other words, if price moves lower below
the PLOD we will assume the sellers have control and we will sell retracements down
to the support levels below at the lows of the price wedge. On the other side of the transitional area,
if the buyers hold the support at PLOD and if the sellers fail to move price
lower we will then BUY the PLOD as the sellers have failed in transition.
then with higher-highs we then buy pullbacks above the PHOD and take profit at
the 1677.7 and the highs of the bear price channel. If price moves lower off
these highs on gold we will sell retracements until we get into the middle of
the price wedge, then we must SOH and wait for the middle to pass it will be
too sloppy. If price tests the PLOD we
will consider this a transitional level of support. In other words, if price moves lower below
the PLOD we will assume the sellers have control and we will sell retracements down
to the support levels below at the lows of the price wedge. On the other side of the transitional area,
if the buyers hold the support at PLOD and if the sellers fail to move price
lower we will then BUY the PLOD as the sellers have failed in transition.
Wedges and price channel are very similar. This BEAR price channel tells us to sell at
resistance for the highest percentage trades.
Another clue we got today is the heat map on the dollar index which says
that dollar index should be falling lower, so the gold should be rising, and
this means trouble trying to buy into overhead resistance so it may be slow
until we get entry above the PHOD, so be patient.
