October 22, 2012
- in Uncategorized by schooloftrade
Morning Crude Oil Checklist:
Heat Map
Review:
Crude Oil moves
at +0.6% so this market personality says to be looking for trading
opportunities
at +0.6% so this market personality says to be looking for trading
opportunities
Overnight
Highs & Lows:
Highs & Lows:
The buyers
failed to push new highs
failed to push new highs
and keep
them above the overnight
them above the overnight
highs. Now we see the overnight lows
and the PLOD
have not been tested yet,
have not been tested yet,
and this is
a target for sellers. This is
a target for sellers. This is
bearish down
to the PLOD
to the PLOD
Inside or
Outside Day?
Outside Day?
Just above
the PLOD we are inside the range from Friday, making this re-balancing Monday considered
a range-bound market.
the PLOD we are inside the range from Friday, making this re-balancing Monday considered
a range-bound market.
Find the price-structures: · Trigger-zone is resistance overhead
· AB=CD Pattern was recently violated
when we broke below 90.19
when we broke below 90.19
· Wedge is considered sideways as it
has broken the bullish price-channel.
has broken the bullish price-channel.
· Price-channel is bullish and we have
recently broken the price-channel.
recently broken the price-channel.
· Zigzag Pattern is not on the 89range.
· Sideways Trading Range from 93.49
down to 89.85
down to 89.85
· Double-top provides support starting
at 87.00 and resistance at 94.25
at 87.00 and resistance at 94.25
Where
will a price-reversal be likely today?
will a price-reversal be likely today?
We have a price-wedge
and an inside day, so the price-reversal will likely occur at the extremes of
these price-structures. We will look for
the price-reversal at the highs and the lows of the price-wedge. As price falls we look to buy-the-lows at
support and if price decides to move higher to the highs of the range we will sell-the-high
at resistance.
and an inside day, so the price-reversal will likely occur at the extremes of
these price-structures. We will look for
the price-reversal at the highs and the lows of the price-wedge. As price falls we look to buy-the-lows at
support and if price decides to move higher to the highs of the range we will sell-the-high
at resistance.
What is
our trading plan for today?
our trading plan for today?
We are trading the 12-12 Crude Oil contract and today’s a
Monday so we would be wise to be patient today and look for the market
personality to tell us when to enter and exit.
Monday so we would be wise to be patient today and look for the market
personality to tell us when to enter and exit.
If price rises higher we will sit-on-hands until we get a
chance to sell the 91.33 resistance overhead.
Above 91.33 we will then look to buy pullbacks with wave-pattern-long.
chance to sell the 91.33 resistance overhead.
Above 91.33 we will then look to buy pullbacks with wave-pattern-long.
If price trades sideways we will sit-on-hands waiting for a
new trading range to develop, and we will buy-the-lows at support and sell-the-high
at resistance of this new range.
new trading range to develop, and we will buy-the-lows at support and sell-the-high
at resistance of this new range.
If price falls lower we will try to get in short but there
may not be enough room on the trade considering we cannot sell into major support. As price moves to the PLOD or the lows of the
price-wedge we will look for the 3 signs of a price-reversal which are size,
speed and momentum to tell us when the sellers are failing, and giving us a
chance to buy-the-lows at support.
may not be enough room on the trade considering we cannot sell into major support. As price moves to the PLOD or the lows of the
price-wedge we will look for the 3 signs of a price-reversal which are size,
speed and momentum to tell us when the sellers are failing, and giving us a
chance to buy-the-lows at support.
If the sellers were to push price even lower, below the price-wedge
lows, we will buy as far down as 89.71 and then with new lower-lows we will
then look for the fake-out-breakout and if the sellers are too strong we will
sell short using the wave-pattern-short below 89.71.
lows, we will buy as far down as 89.71 and then with new lower-lows we will
then look for the fake-out-breakout and if the sellers are too strong we will
sell short using the wave-pattern-short below 89.71.
