January 11, 2012
Price Wedge day trading strategy uses crude oil inventories news
This morning’s price
wedge strategy was an excellent example of how technical patterns and fundamental
analysis of the news will sometimes clash at certain points in the market. Every Wednesday @ 1030am EST we see
inventories from crude oil futures and this morning we also had a very specific
day trading strategy that involved buying the lows of a price wedge.
wedge strategy was an excellent example of how technical patterns and fundamental
analysis of the news will sometimes clash at certain points in the market. Every Wednesday @ 1030am EST we see
inventories from crude oil futures and this morning we also had a very specific
day trading strategy that involved buying the lows of a price wedge.
We began the day with a very specific buying location,
around 100.50, and by the time we waited for price to come down to our buying
location we had to deal with crude oil inventories that came out very
bearish. Inventories came out much
higher than expected, and the demand number came out lower, which signaled many
sellers to enter the market.
around 100.50, and by the time we waited for price to come down to our buying
location we had to deal with crude oil inventories that came out very
bearish. Inventories came out much
higher than expected, and the demand number came out lower, which signaled many
sellers to enter the market.
We know the value of our technical price wedge trading
strategy, but at the same time we needed to be careful of the fundamentals that
were pushing price lower. This was a
classic example of the bears, led by fundamentals, working against the bulls
who were operating off technical’s.
strategy, but at the same time we needed to be careful of the fundamentals that
were pushing price lower. This was a
classic example of the bears, led by fundamentals, working against the bulls
who were operating off technical’s.
I personally believe that technical are the most important
way to analyze the market, and then using those technical set-ups we look for
fundamentals to confirm or deny the trade entry. The problem this morning was that at 1030am EST
we had them pointing in different directions, so we waited for the sellers to
exhaust and we bought the lows of the price wedge at 100.75 just as we had
planned.
way to analyze the market, and then using those technical set-ups we look for
fundamentals to confirm or deny the trade entry. The problem this morning was that at 1030am EST
we had them pointing in different directions, so we waited for the sellers to
exhaust and we bought the lows of the price wedge at 100.75 just as we had
planned.
We review day trading strategies similar to the price
wedge every day in our live trade room, and our team looks forward to
sharing these technical and fundamental analysis methods with you again
tomorrow as a member!
wedge every day in our live trade room, and our team looks forward to
sharing these technical and fundamental analysis methods with you again
tomorrow as a member!
