September 28, 2011
- in Uncategorized by schooloftrade
Mini Russell Price Channel helps me find the highest percentage trades
815am est
Euro futures are trying to break out of the range from Tuesday so we begin here first this morning.
Euro futures have three clues for us today:
– Inside Day transition
– Bull Price Channel
– Bull Price Wedge
Inside day transition means that buyers pushed price above the PHOD and it FAILED to keep going higher. This is a strong bearish clue, so we sell the break below PHOD.
Now that we are inside the range from Tuesday we will trade within that range, so use the PHOD as resistance and the PLOD as support.
Bull price channel tells me that the higher % trades will be buying (long) today.
Bull price wedge tells me to buy the lows of the wedge and sell the highs.
If price rises i will sell the wedge highs and the range highs as resistance, including the PHOD 1.3662.
If we keep moving higher above the PHOD i will then buy pullbacks with new higher highs, as well as look for the buyers to fail and sell short with a price reversal.
I will also sell the highs of this bull channel.
If price falls im going to continue to sell retracements and 2step patterns on the way down off the highs of the range.
I will be looking to buy the lows of the wedge and bull price channel around 3590 down to 3535 (depends on when we test the lows)
825am est
We have the dollar index moving lower this morning in a strong bear price channel. Falling dollar will mean rising crude, gold, euro, Russell.
The correlation on the dollar is most effective with high volume, so keep that in mind that low volume will cause this correlation to break down.
Looking for new lower lows on the DX to confirm a long position on the euro this morning, and visa versa.
855am est
Gold price structures are very easy this morning.
– Price Wedge, multiples
– Bear Price Channel (bias)
– Inside day, personality
Price wedge tells me to buy the lows and sell the highs of the wedge. Also, look for failures at new highs and new lows (fake-out breakouts).
Bear price channel tells me the higher percentage trades will be to the short side (selling).
Inside day tells me to buy the PLOD as support, sell PHOD as resistance, and to buy as price falls, sell as price rises.
The inside day and price wedge have always been very good to us. As price rises im looking for 2-step patterns to sell short. As price falls im looking for 2-step patterns to buy long.
If price rises im selling the highs of the bear channel 1654.6 area, selling the highs of the wedge 1660 area, 1670 area, and up to 1675 area for the shorts. I will also sell the PHOD 1679.2 as resistance, and if we break above the PHOD I will then look for the failure first, and then buy pullbacks with buyers in control.
If price falls on gold i will buy the lows of the wedge starting at 1646.5 area all the way down to 1644.7 major support.
As price drops im buying at major support, including the lows of the wedge, the major support at 1636.0 and the PLOD 1632.5
930am est
The dollar index has broken the bear price channel, so we no longer have a correlation until we see another dollar trend.
Sideways dollar = anything can happen up or down.
Trending Dollar = gives us a directional bias.
945am est
Gold is trying to push through the highs of the bear channel, and we are trying to stay patient and wait for the SHORT TRADES because they are higher percentage.
We can see the buyers struggling at these highs, and we want to sell resistance as price rises in hopes of getting the sellers to pull it back down into that channel.
We also know that 1646.0 the BMT 89range will be a strong price magnet, so use that as your guide to know how far your final target will be when selling short.
1035am est
Russell Futures has three distinct price structures:
– Bear Channel
– Inside day
– Price Wedge
Bear channel tells me to sell at resistance and sell new lower lows with retracements. It gives me a direction bias.
Inside day tells me the market personality is most likely indecisive, or range-bound. If we are inside the range from Tuesday we assume this SAME range will be used again today. So buy the PLOD 661.9 as support and sell the PHOD 692.1 as resistance.
Price wedge is very similar in personality with the inside day. Price wedge tells me to buy as price rises, and sell as price falls.
Price wedges are big clues for personality, so look for the breakouts to fail ( fake-out breakouts) and look for the middle of the wedge to be the sloppiest area on your chart.
