Three Clues all we need for profit day trading crude oil and gold

855am est We review the news today We have no CAD-related news which will impact crude oil futures We have no major economic news reports today, so expect to see a potential Golden Lunch We will look for clues for the Golden lunch later on today @ 1100am est when the day slows down. We have to worry about the US market open, the dead zone at 1030am, transition into lunch at 11am, and then looking for the late morning move as the European markets close at 1130am. As soon as the markets slow down we will we will be doing members-only training after 1130am est today. We have a short week ahead, the Memorial Day weekend is the official start of the summer here in the US. Very slow going into the end of the week. Lets prep for the dollar index today DX 06-11 89-Range chart shows us the sideways range has been broken to the upside. This tells me two things: 1. The dollar will keep rising 2. The dollar will reverse/fail and drop back into the range it just broke. With those two things I can now plan my trading for the rest of the day. If the dollar keeps trending (see the 13range) then we want to keep selling new lows and selling at resistance with a 2step reversal or a wave short (selling retracements) IF the dollar fails and comes back down into the range it just recently broke, now we know this is sign of an INSIDE trading day. Inside days tell us the market has accepted the current range of prices, making the highs and lows of that range our entry locations. Inside day = trade inside the range (sell the highs and buy the lows) Outside day = look for breakouts of the range (sell retracements and buy pullbacks) Our specific plan of attack for the Dollar: – If we make new higher highs on the Dollar im selling new lower lows on the crude/gold/Russell/euro/etc – If the dollar falls back down, im now going to trade inside the range on crude oil and gold, sell the highs and buy the lows. As price drops down on the DX I will be looking for support levels to be a buyer. 920am est We review the 07-11 Crude Oil Contract and we see the following No CAD news today, and no crude-related news today (example Wednesday Inventories) 89-range chart shows me Price Wedge in thick yellow trend lines Sideways Ranges in the white boxes Bear-channel in dotted yellow trend lines Bull channel in Pink trend lines is almost sideways, but slightly bullish What do we know about crude oil from the 89range chart? Buy the lows and sell the highs of the sideways channel The BMT is above us, which will act like a magnet for price Major support at the lows of the wedge, channel, and sideways range We know that the dollar may be dropping from the highs, which may give us the opportunity to buy this price reversal and take CL 07-11 back up to the highs again. The bull channel means buying support levels as price drops is the higher % trades today. I will be looking to trade inside this price channel buying lows, selling highs, until the market breaks out. Now that we have the most important price levels, now let’s zoom in on a faster chart and really get specific about our plan of attack. We use a 34range chart to get more details. We add a narrower price wedge Our plan of attack on crude oil: – Buying pullbacks with new higher highs as the dollar drops – Selling retracements with new lower lows as the dollar rises – Buy the lows and sell the highs of the bear channel on 34range chart – Use the price channel and the wedge as support and resistance – Buy the lows of the channel/wedge/range and sell the highs – BMT is above us, along with the PHOD and the OPEN, which will all attract price UP – If the dollar drops this market wants to JUMP – If the dollar stays sideways this market may stick to big round numbers, trend lines, and middle of ranges. 1025am est We’ve had plenty of good trades today, earned 87 ticks the easy way by following our simple plan of attack. The key this morning was taking our time and not forcing the trades that come our way. The markets are surely confused. We’ve traded crude 4 times and each time the markets have shown lack of long term direction. We can trade anything that moves, we just want to wait for the highest % trades. Crude Oil is at the highs of the channel and we want to find a retracement to re-enter selling these highs. 1125am est We are waiting patiently for the late morning move from the European Close We have seen very slow and sloppy markets this morning on a Monday without any major news We know this is a short week with a Holiday Weekend coming up, which MAY be why the volume is lower. We’ve earned over 240 ticks of profit, which includes almost a full stop loss. We have trade all crude oil today b/c the gold market has been sloppy and sideways. We had the dollar rising and then it began to fall off the highs. As it falls we are buying support using 2step long and wave long patterns. Now at 1130am we wait to see where the speed and volume will enter the markets. Lets plan our attack on Crude Oil after 1130am EST If price rises: Buying pullbacks with new higher highs Buying at support, which may have recently been resistance (now broken) Beware the 13r BMT at 97.19, 97.77 is the 21r BMT. These are great final profit targets, but NOT good for entry locations. Sell the highs of the bull-channel in green trend lines If price falls: I can buy support at the lows of the range, the lows of the channel and the wedge lows all around 96.00 We may need to sit on hands around 96.00 b/c it may turn out to be very sloppy. Big round number and multiple support levels. I am selling retracements below 96.00 and below 95.00 It’s hard to tell what the price action will LOOK like below 96.00 but I would assume it will be very sloppy.