May 10, 2011
- in Uncategorized by schooloftrade
The Price Channel made me do it….the Dollar did it first!
830am est
– We’re reviewing the Gold Futures market and we see the following
o Price Channel in pink trend lines
o Price Wedge in Yellow trend lines below us
o BMT and OPEN is below us
o Trading above the PHOD
o We are in a transitional area between the highs of the range we are in, and the lows of the range above us 22.1 is the high of this range.
– With this information, my plan of attack will be as follows:
– If price rises:
o Im selling the highs of the channel, the highs of the range, and the highs of the day at 22.1
o Im selling first as price rises, then if we see new higher highs I will then buy a pullback, never buying into the highs.
– If price falls:
o I want to use the PHOD as support, so buy the PHOD first, then sell below the PHOD
o Avoid trading around the 1511.4 the OPEN
o Avoid the 2.7 previous day’s OPEN this will be sloppy
o Buy the support of 07.1 which is also the highs of the wedge
o Buying the LOD at 1505.2, and buying the PLOD 1498.4, but use extra caution because the PLOD is also the BMT which is very sloppy.
o Avoid trading around the 1500.00 level, so this area around 1500, BMT and PLOD may be challenging, so use caution.
– The ultimate goal trading gold today is to sell the highs and buy the lows.
– Avoid the middle, and wait for the best opportunities.
– We’d LOVE to get the short off the highs of the wedge/channel, looks like there is plenty of room to drop.
845am est
– We see the Import prices came out higher than expected at 830am today
– This pushed the dollar down, which may result in rising prices on the markets we trade.
– If the dollar continues to drop after this news we will continue to see higher highs and buy pullbacks at support on the markets we trade most.
– That is how you PROFIT from reading and understand the economic news.
920am est
– We’ve had two chances to sell the highs on crude this morning
– Both of them got me in on increasing speed, momentum curling, and NO BIG MONEY
– Both were small winners, and both were great illustrations of how important big money is to the larger moves.
935am est
– We had three trades and three winners on crude, following our plan, selling the highs with retracements
– Now we look at the dollar and see a BEARISH PRICE CHANNEL on the DOLLAR
– Falling dollar = rising markets we trade most
o If this DX keeps dropping to new lows, we will keep looking to buy with pullbacks, and buying at support with price reversal patterns.
o If the dollar trades sideways, we then look for either direction in our trades
o If the dollar reverses and shows a break of this bearish short term trend we then look for selling opportunities on the markets we trade most.
935am est
– We’re preparing for our next set of moves
– Crude oil trading at the lows of the channel, we want to buy these lows
– Our plan of attack on crude is as follows:
o If price rises:
§ Im buying pullbacks, buying the lows of this channel
§ Im selling the highs of the wedge around 102.00
§ I will sell the highs of the range at 103.0, 103.77 is the major resistance
§ And if price keep rising I will buy pullbacks above
o If price falls
§ I’m buying the lows of the price channel (here right now @ 101.00)
§ Buying the lows of the sideways range at 100.00
§ Beware trading around 100.0 it will be extra sloppy
§ Buying 99.0 the lows of the wedge
§ And then buying major support at 96.95
§ As prices are dropping im buying at support, but then selling retracements as we make new lows
§ Never selling the lows.
1000am est
– We’ve seen the dollar now change its short term direction from sideways back to new lower lows
– We are now in the bearish channel on the dollar, and falling dollar will give us rising prices on markets we trade most.
– This makes perfect sense with the CL at the lows of the channel, we want to keep buying
1005am est
– We see the personality change around 10am est
– This may be due to the 10am news, but we also want to keep an eye on this to see if this was a sign of things to come
– We tried three times to get into a successful 21r wave long, and all three times it failed at new highs
– Hopefully we can improve on this price action
1050am est
– We’re officially in the DEAD ZONE
– After the final news this morning
– We’re before the European Close @ 1130am
– The volume is slowing down
– We’re not seeing any personality
– And we cant tell WHO is in control
