October 6, 2011
- in Uncategorized by schooloftrade
Narrow trading ranges on Euro Futures are easy clues to hit profit goals
Today is Thursday with 830am news and tomorrow’s Friday with nonfarm payrolls.
This tells us to be ready early this morning, and look for a slowdown after 1030am EST this morning ahead of news tomorrow.
So we know the window of opportunity will be smaller today after 1030am EST.
815am EST
Crude oil futures trading at the highs of the range I am selling at the price channel highs, the PHOD and resistance at these highs.
My goal is to sell below the PHOD down to the PLOD or sell at the resistance overhead at 81.15
If we break below the PHOD we then sell down to the open 79.50 and then down to the price channel lows as support. Buy price channel lows first, and then sell retracements after we break the support below the price channel lows.
The goal is to sell it off down to the BMT 78.44 and then will new lower lows keep selling retracement down to the PLOD to complete the mission from top to bottom of the range.
840am EST
We have euro currency futures trading below PLOD and we’re looking for wave patterns short but trichet is speaking and we need to be careful
900am EST
Where are the highest percentage patterns on our markets?
Crude oil futures we want to sell the highs of 81.15 if price keeps going higher we then buy pullbacks up to 81.50 and then sell at 81.50. if e go higher we then buy pullbacks up to 82.00 and then look to sell the price channel highs on the 89range chart.
If price tumbles I’m going to sell retracements down to PHOD and then buy PHOD as support first. If we break below the PHOD we then look to sell with retracements down to the 89r trigger line and below 79.32 trigger line we continue to sell retracements with new lower-lows. Our goal on crude oil futures is to get price down to the PLOD as the final target.
Euro currency futures trading around the PLOD and we are NOT getting the personality we expect when price goes inside day from outside day. Something has the euro currency futures traders confused as for long term direction.
The new conference and the news about 12-mo maturities is likely the cause of this slop, so be looking for better price action.
If price rises I’m buying pullbacks above the PLOD as the buyers should be in control.
I want to avoid trading in the middle of the range around 3325 area, this is the middle of the sideways range over the past 2 days.
If we go to the PHOD I am selling the PHOD as resistance first, and then buying pullbacks with the target of the sell zone overhead at 3408 up to 3471. Then sell the price channel highs at the top of the sell zone.
If price drops to new lows I am selling retracements below the PLOD as sellers should be in control.
We intend to take price on the euro currency futures down to the 1.3142 major support ad the lows of the range and the price channel lows.
I will then buy the lows at 1.3142 as support and look for price reversal back up into the range above us around the PLOD.
930am EST
Markets have been very busy this morning and we’ve made some good profit from 830am through 930am after the jobless claims came out better than expected.
Russell is trading at the highs of the bear price channel, the highs of the price wedge and the buyers recently failed to break above the PHOD.
All signs point to sellers in charge on the Russell.
If price moves higher on Russell we will sell the PHOD first, and then buy pullback after new higher-highs. The long positions above the PHOD will only go up to the highs of the price channel. Sell the price channel highs and the resistance around the price channel highs of 64.3, 67.8, 72.1 and 85.4
If price moves lower I will buy 48.4 the lows of this current sideways range, and that will be higher risk because of the highs of the price wedge. If price breaks new lower-lows below the 89r trigger line then I start selling down to the PLOD 635.5. I will then buy the PLOD as support first, and then with new lower-lows again below PLOD we then sell retracements with new lows.
As price drops below the PLOD we will take profit at the price wedge lows, the trend line 615.0 area. Tough to tell where that final target will be until we get there.
1050am EST
Markets are slowing down, the personality is changing ahead of the lunch session in the US. Tomorrow we have non farm payrolls which is our biggest news we have, so traders are undoubtedly headed to lunch early.
We’ve had an incredible day, so let’s find our highest % trades and stick to our plan.
Crude oil futures is failing above the PHOD so when it comes back down below 79.91 we need to be selling those new lower-lows with retracements.
I will have the opportunity to buy the bull price channel lows, however, this FAILURE to the new highs is a big clue so look for the failure of the buyers to hold us inside the bull price channel.
Russell is trading at the highs of the bull price channel just above the PHOD so buyers in charge.
I’m selling the price channel highs and the resistance levels above the price channel highs.
If price keeps making new highs above the price channel I will be very careful trying to buy b/c its always very sloppy to buy the highs of a bull price channel.
If price comes back down below the PHOD 59.1 we will then sell once again.
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Questions from Members:
Price wedge vs. Price channel
The price wedge always wins, so beware the breakouts on the price wedge.
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Price Alert Indicator
Goes off only once I believe, and this is a standard indicator in NT7.
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Crude oil futures VIX, does it matter?
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How do we get the correct entries for SCALPING trades?
Pure tape reading
I will use the 4range chart for the price pattern and then the tape reading will confirm the entry.
Then use your slower timeframes to find the final target.
If you want to learn scalping, you need to learn the Fast Track first.
Why? Because that will teach you the 20-40 ticks ranges which will be used for your scalping targets.
Once you know the typical ranges you see most often on the markets you wish to trade, then you can focus on the entry pattern and entry trigger.
Patterns will come on 4-range, 8-range, 1-minute (fast timeframes)
And the entry triggers will come from reading tape at the time you wish to enter.
