Price Channel Day Trading Strategies for Euro, Crude, Russell and Gold futures

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Let’s review today’s day trading strategies together in the trade room 

Dollar Index trading in a narrow range, inside day, in a price wedge, and this tells us exactly where to be looking for reversals in price, and also trading opportunities. 

Dollar 13range chart confirms the price wedge structure and our strategy will be to use the highs and the lows of this wedge as potential reversal points for us to use in the opposite direction with the negative dollar correlation.  look to sell when the dollar is at support, and buy when the dollar is at resistance.

Dollar Index Average true range tells us to expect a lot of what we saw from the dollar index on monday.  our trading strategy looks for RISING average true range, so we will keep checking back on this chart all day.

Crude Oil futures trading in a bull price channel at the highs, so we are looking to sell these highs, and sell below the PHOD.  Then buy at support below us because this is a bull price channel and buying at support is highest percentage.

Crude Oil 34range chart shows us much more detail.  we have 3 bull price channels, so this tells me to buy at support as price falls.  Sell channel highs, buy channel lows, and look to sell the failure back below the PHOD.

Crude Oil 34range also shows us the AB=CD Pattern, and our trading strategy says this will be a magnet to trade up to, and then look to sell the reversal zone back down.

Crude Oil 21range chart shows more bull price channels, so look to buy at support

Gold Futures also trading in strong bull price channels, so buy the lows, sell the highs, and avoid buying into the highs and around the big round number of 1800.

Russell Futures trading in a bull price channel and a price wedge.  Wedge tells us to ‘fade the breakouts’ and the channel tells us to buy at support as the higher percentage trade.  Sell the highs, buy the lows, avoid the middle of the wedge.

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– European stocks bounced back from yesterday’s losses ahead of Italy’s budget vote.

– The European morning mostly maintained a cautious sentiment ahead of today’s Italian parliamentary vote on public finances, which threatens to topple PM Berlusconi but price action seemed to express some optimism over the potential outcome.

– The economic slowdown in Germany could cause the EU to move into a recession. The recently released German data has been weaker than expected, including its September industrial production and factory orders. The recent data suggests a slowdown at the end of the third quarter.

– The Telegraph’s Ambrose Evans-Pritchard noted that EU officials have been unable to build an effective “firewall” to protect the union’s larger economies. One problem with the EU is that it does not permit the creation of back-stop guarantor.

– Gold highlights the unease in the European political front

– Italy PM Berlusconi still has the majority in the 630-seat lower house perhaps by 2 votes ahead of possible confidence vote

– Key Chinese CPI data expe3cted to show a slowing in inflation

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Our day trading strategies today will depend on the news, and today we do not have any major US news to worry about, so the focus will be on Europe once again, and the news chatter surrounding it this morning.

Remember to be patient on days without any major news, let the markets get into a rhythm and then look for your opportunity to trade when the market’s personality is most consistent.  I’m looking for things like speed, size, and momentum to confirm when we take trades today.

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