May 25, 2010
- in Uncategorized by schooloftrade
Im watching the Dollar Index Futures contracts, lets see what day trades are setting up tomorrow
we day traded 4 contracts on crude oil futures today, made 41 ticks, and almost saw our DX-Pattern on the Euro, but volume was a little too light on this Holiday trading day.
congratulations to our members making money today, especially to our newest members who joined us today.
lets prep for tomorrows day trading futures contracts for the markets we trade..
ill start with the dollar index because its the market that MOVES everything else.
The dollar futures is trading at its high of day, so we need it to break to the downside for this trade.
I see an open range of price from 86.721 down to 85.605.
My entry trigger will be the dollar below 86.721 but I need to keep an eye on 86.605 as a possible reversal spot for the dollar contracts.
Now lets see where we will enter the trade, lets review the currency futures contracts starting with Euro futures
We have the Euro futures exactly where we want it, trading opposite to the dollar index, at its low of day.
I see an open trading range from 2322 up to 2358, so lets use that for the day trade.
I will enter long the euro above 2322, with a target of 2358.
(Members, watch our advanced course video: DX-Pattern in the members section)
Lets move to the Aussie Dollar…
The Aussie Dollar is right at its low of day as well, this is setting up nicely for a long trade on the 6A aussie dollar currency futures contracts.
we have our medium chart’s 8222 which is spoiling the party on the trade above 8205, so let’s wait to get above the 8228.
An aggressive entry will be above 8205, but my conservative entry will stay patient and wait for long above 8228.
Lets take a look at the Swiss Franc Currency Future Contract…
I can clearly see the Swissy currency futures are trading in a nice wide trading range, but this leads me to believe this might be a bumpy ride on this day trade.
I the best trade on this will be long above 8631, but notice the 8646 is overhead resistance, so perhaps take 1/2 position off their, and then close out your trade at 8656.
ideally, id look to read the tape around 8646 and see what the tape tells me.
are we seeing more buyers than sellers? etc, etc.
if we see good speed of the tape into this overhead level, i will look to hold my position until i see the speed slow down.
use the pace of tape indicator for this, and watch it around support and resistance levels like we see here.
Thats all im watching tonight….see you in the live day trade chat room tomorrow @ 745am EST!
