August 8, 2012
- in Uncategorized by schooloftrade
Morning Crude Oil Checklist:
Heat
Map: What is it telling us?
Map: What is it telling us?
Crude Oil is
bearish in the eyes of our heat map -0.4%.
this means selling with wave-pattern-short may be our high-percentage
trades today, we need to confirm with the market personality.
bearish in the eyes of our heat map -0.4%.
this means selling with wave-pattern-short may be our high-percentage
trades today, we need to confirm with the market personality.
OHLC
Analysis:
Analysis:
We look
bullish in the sense that we have 4 out of 4 higher-highs however, the price
overnight dropped on what we can assume is the European news. 630am EST we saw a possible token print, a
big hammer-pattern on the candlestick chart.
This candle shows us the price-reversal and we are wondering if this
will be the tone of the day?
bullish in the sense that we have 4 out of 4 higher-highs however, the price
overnight dropped on what we can assume is the European news. 630am EST we saw a possible token print, a
big hammer-pattern on the candlestick chart.
This candle shows us the price-reversal and we are wondering if this
will be the tone of the day?
Overnight
Highs & Lows:
Highs & Lows:
We broke the
lows from Tuesday, and then when we tried to break the new lower-lows we failed
to the downside. This failure may indeed
result in a re-testing of the highs from Tuesday at 94.42.
lows from Tuesday, and then when we tried to break the new lower-lows we failed
to the downside. This failure may indeed
result in a re-testing of the highs from Tuesday at 94.42.
Are we
inside or outside day today?
inside or outside day today?
Inside the
range from Tuesday, below PHOD, above PLOD I am trading range-bound which tells
me to buy at support and sell at resistance.
As price rises I’m selling at resistance, and as price falls I’m buying
at support. Inside day tells us to
assume we will stay inside the range.
range from Tuesday, below PHOD, above PLOD I am trading range-bound which tells
me to buy at support and sell at resistance.
As price rises I’m selling at resistance, and as price falls I’m buying
at support. Inside day tells us to
assume we will stay inside the range.
What
price-structures do we see?
price-structures do we see?
· Trigger-zones are both support below
us and we may indeed use them this morning.
us and we may indeed use them this morning.
· AB=CD Pattern is bearish and the ‘D’ target
for this is up around 98.00
for this is up around 98.00
· Price wedges are everywhere on Crude
Oil today. We can see the previous price
wedge below us and a new bullish price wedge created from the recent swing-high
back to the ‘B’ point swing-high.
Oil today. We can see the previous price
wedge below us and a new bullish price wedge created from the recent swing-high
back to the ‘B’ point swing-high.
· Price channel there are 2 of them and
they are both bullish. 96.00 is the
resistance from the next price channel highs.
they are both bullish. 96.00 is the
resistance from the next price channel highs.
· Double-bottom is easy to spot and we
can see the final resistance level from this at 94.70. once we break 94.70 we then cancel the
double-bottom altogether.
can see the final resistance level from this at 94.70. once we break 94.70 we then cancel the
double-bottom altogether.
Where
will a reversal be likely today?
will a reversal be likely today?
The
price-reversal will most likely occur with a test of the resistance at 94.42
with the PHOD, trend line, and double-bottom resistance. We also know that when the traders fail to
push new highs or lows around the PHOD/PLOD this is always a great spot for
price-reversal.
price-reversal will most likely occur with a test of the resistance at 94.42
with the PHOD, trend line, and double-bottom resistance. We also know that when the traders fail to
push new highs or lows around the PHOD/PLOD this is always a great spot for
price-reversal.
On the flip
side, if these buyers fail and we get below the trend line highs of the price
wedge below us we can easily get aggressive and sell short, ultimately selling
the highs of the price wedge.
side, if these buyers fail and we get below the trend line highs of the price
wedge below us we can easily get aggressive and sell short, ultimately selling
the highs of the price wedge.
What is
our trading plan for today?
our trading plan for today?
We are bullish until these buyers start
failing. The token print at 630am EST
gave it all away. We need to remember
this is a Wednesday so trade carefully on Crude Oil until after 1035am EST.
failing. The token print at 630am EST
gave it all away. We need to remember
this is a Wednesday so trade carefully on Crude Oil until after 1035am EST.
We’re using
the wave-pattern-long to buy Crude Oil contracts and take profit at the
resistance at 94.42. once we test 94.42
we take our profit and look for the price-reversal to sell short. I’m looking for the wave-pattern-long to fail
at the PHOD or the 94.70 and then we sell short with a 2-Step short.
the wave-pattern-long to buy Crude Oil contracts and take profit at the
resistance at 94.42. once we test 94.42
we take our profit and look for the price-reversal to sell short. I’m looking for the wave-pattern-long to fail
at the PHOD or the 94.70 and then we sell short with a 2-Step short.
If price
stops rising and trades sideways we go back to the drawing board. If price reverses and drops lower we will
look to sell below the 92.80 previous price wedge highs.
stops rising and trades sideways we go back to the drawing board. If price reverses and drops lower we will
look to sell below the 92.80 previous price wedge highs.
