September 13, 2011
Price Wedge vs. Outside Day; Earn 325 ticks day trading mini Russell Futures
We have early morning news, so look for opportunities before 900am and we have afternoon news, so do not expect the Golden Lunch.
With 2pm est news this afternoon we know that volume will be tapering off after 1130am est.
Get in early, be patient for market personality this morning, and then watch the clock after 1130am est for slowing markets ahead of the news.
800am est
Crude Oil futures on the 89range chart shows us three price structures:
Bull Price Channel
Price Wedge (bull)
We then use the faster timeframe 34range chart to find the intra-day levels on crude oil, and we find 3 basic price structures:
– Bull Price Channel
– Price Wedge
– Outside Day
My plan of attack using these 3 clues will be the following:
Bull channel says As price rises I’m buying pullbacks with new higher highs. As price falls to support I’m buying at major support.
Price Wedge tells me to sell the highs, buy the lows, and avoid the middle of the wedge.
Outside Day tells me the buyers are in charge (above PHOD) so im buying pullbacks with new highs, and buying at support if price drops to major support. Outside day becomes inside day when we break below the PHOD 89.21 and the entire structure changes.
We’re going to be using this bull channel, hand in hand with the outside day to keep buying at support as price rises.
Im going to sell the highs of the major wedge around 90.48 but I can buy up to that major resistance.
If we fail at these highs and tumble back into the PHOD and this becomes an inside day we then want to sell the break below the PHOD 89.21.
If price keeps falling below the PHOD we want to look to major support around 88.00 down to 87.24 to buy the support outside of the bull price channel.
825am est
Euro is trading in a narrow, sideways range, with a price wedge. We want to fade the highs and the lows. So buy the lows of the wedge and the range, sell the highs of the wedge and range, and avoid the middle of the wedge.
If we make new highs, sell them. If we make new lows, buy them. Be patient not to trade the middle.
930am est
We took 4 trades on crude oil, 3 winners, 1 loss, and we’re having a hard time seeing any market personality, so patience is the key this morning.
Gold 89range chart gives us some easy clues this morning.
· Price Wedge
· Inside Day
· Bear Channel
Now lets use the faster timeframe 34range chart to find our intra-day levels.
We see a price wedge, inside day, and a short term bull price channel.
Buy the lows, sell the highs, avoid the middle of the wedge.
Buy the lows of the price channel as support. And buy the major support if price breaks new lows below the price channel.
Buy the PLOD as support, sell the PHOD as resistance. Inside day reminds me to avoid the fake-out breakout.
1030am est
Average true range on crude oil is falling since 10am. This is what we assumed the case since our trades arent going more than 10 ticks at a time.
We’re getting the patterns, but the personality in these markets is making it a little concerning.
Watch out if this ATR continues to fall the NEXT trade we take may not go 10 ticks..it may only 5 ticks. Then we lose money, rather than making money.
1045am est
Market Personality is telling us to be very careful. ATR is dropping, and we arent seeing the speed and the movement we got earlier today.
News @ 2pm EST this afternoon is a very big clue as of WHY. People may be waiting to see what the fed’s budget statement looks like BEFORE they trade more.
At this time of the day, all we can do is plan ahead for the highest percentage trades:
Euro:
Price Wedge and a narrow trading range, inside the range from Monday.
I want to sell the highs of the wedge and sell aggressively below 1.3695 PHOD.
We also want to buy the lows of the range/wedge, however, that is out of reach at the moment.
Gold:
Personality stinks, there have been plenty of opportunities, but sloppy patterns, no consistency in the price action, and the 2pm news from the Fed has us concerned this market may be too dangerous to trade.
We have a bull channel, and inside day. SO as price falls you buy support, and as price rises look to sell (short term) at resistance, and then look for the bull channel to push price thru resistance so we can buy a pullback.
Crude Oil:
Price is trading on the PHOD and it wont budge. If price makes new highs above 90.50 then we can consider buying a pullback, but im still going to look for the fake-out breakout first.
We are at the highs of the major wedge, so if the price breaks the lows of the bull channel and the OPEN 88.98 then we can start selling.
Questions for 11am:
If you upgraded to the newest NT7 software and your account info is not there, its most likely your LICENSE KEY.
Contact your broker to make sure you have it correct.
What are the specific definitions we use for big money.
Advanced Course, use the time and sales window properties.
3 types of traders:
Institutional = IRA’s, Retirement Funds, required to trade. (PAPER)
Pro’s = Hedge Funds, Experience Individuals, People that do this for a living
Speculators = trying to become pro’s, they add liquidity FUEL the entire process. They are the ONLY ones willing to buy highs and sell lows.
– Watching a pattern on a 13-range chart
– The pattern is a Wave Pattern
– And it is short in direction
New trader with SOT:
– Learn the method
– Earn 30 ticks per day
– Within 30 days
– YES!!!
Here’s how to do it:
– Register as a member
– Attend our Monday/Wednesday trainings
– Use the Video Guide to set up charts
– Use our full time tech support team to help you get them working 110%
– Learn our 3 price patterns
– Submit your Custom Trade Plan Worksheet
o Give me info on YOU
o I will give you the EXACT plan of attack
– 10 days of execution of this plan, and every 10 days of PROFITS we then add 1 more contract.
o Start on demo for 10 days
o 10 days of profit on demo, then trade 1 contract
§ Daily goal = 30 ticks per contract
o 10 days more profit we move to 2 contracts
o 10 more days…move to 3 contracts
o Etc
o Etc
