Price wedge day trading strategy crude oil and euro

Our day trading strategy begins with the dollar index, looking for major turning points and the short term trend.  This morning on the 13-range for the DX 03-12 we see the wide bearish channel and we can expect similar price movement as we saw on Tuesday going from bottom to top and then top to bottom.  Remember there’s a likelihood of this channel support failing and if that happens price will move lower to 78.560 so keep that on your radar for potential this morning.

At this time our short term trend is down, however, we are sitting on a major turning point we can expect this trend to end, it may go sideways, it may keep going lower, or it may reverse and go higher.  Lets plan for all three of these scenarios this morning.

Dollar Index Day Trading Strategy

The Mini Russell is trading in a sideways range this morning and we just saw the buyers fail at the highs of the day and the PHOD from Tuesday so we want to sell these highs.  use your dynamic trigger lines as targets below you and look for the final stop on the way down at the OPEN or the Channel Lows.

Russell Day Trading Strategy

The Euro Currency Futures are trading in a bull price channel and a short term price wedge.  We are watching the dollar index as a highly correlated market to the euro this morning so when the dollar rises off the lows we can sell the highs of this price wedge on the euro.  Notice the MAJOR support at the wedge lows so buy the lows and sell the highs, trying to avoid re-entering a trade in the middle of the wedge.

Euro Day Trading Strategy

Euro currency futures shows us a very interesting scenario on the 55-range chart.  We have a bull channel and a price wedge that are fighting over control.  The buyers have price at the losws of the channel and the sellers have price at the highs of the wedge so we need to trade carefully.  As price rises im selling the wedge highs, and then above 1.3254 I then will buy a pullback considering we are then in the channel lows, above the wedge.  If price moves lower I want to sell the highs of the wedge and take dont into 3130 and then to the wedge lows around 3075.  I will then look to buy the wedge lows.

Great example of channel vs. wedge euro

We finalize our day trading strategy for the Euro with the 34 range chart, which shows us the exact entry locations and the highest percentage direction for our trading this morning.  we want to sell as price rises until we get clear above the wedge highs.  Then I will buy a pullback above the 1.3254 after looking for the failure first.  If price falls we’re selling the wedge highs, looking for targets at the support around 3100-3096, and then looking for more support and buying opporutnities at the wedge lows.

day trading strategy for crude oil futures uses the Price wedge and the double-tops and double-bottoms as additional support and resistance.  We have the 100.00 big round number overhead which is always a magnet and a location we want to avoid entries around.  Currently we have price action sloppy ahead of the 1030am inventories news for CL today.

Crude Oil Day Trading Strategy

The Mini Russell Trading Strategy uses the long term bull price channel and the more recent sideways trading range.  We can easily see the triple tops and bottoms so we use that as our biggest clue.  As price rises to the highs im looking to sell first, and then if the buyers are too strong I will then buy a pullback after disqualifying the fake-out breakout.

Mini Russell Day Trading Strategy