August 19, 2011
- in Uncategorized by schooloftrade
Slow Summer Price Action? We trade FAILURES for HUGE Profits!
Today is OPEX, so being selective with the times we chose to trade will be the most important aspect today.
You may not see a single trade today. OPEX Friday in the summer is screaming at us to be careful.
845am est
Crude Oil futures are trading in a price wedge and an inside day.
Both of these clues tell us to beware the breakout, and to buy the support and sell the resistance.
So we know that crude oil is going to be range-bound until something changes.
This can change very quickly, so this is not our final assessment of the morning.
My plan of attack on crude oil:
– Buy the lows and sell the highs of the wedge
– Buy below the PLOD
– Sell the PHOD
– Sell the HOD
– Sell below the 81.19 sell the channel highs
– Avoid the 83.00 big round number and BMT 82.96
– Avoid the open 81.45
900am est
Buyers Fail at the channel lows and we see selling opportunities now considering this is a summer Friday, inside day, and inside a wedge.
930am est
We wait for the US Markets to Open, sitting on hands through 930am we are now up by over 100 ticks of profit on this Friday morning. Yes!
We sold the failure of the highs, and then sold again when we broke below the OPEN, which is the line in the sand between buyers and sellers for me.
1000am
We bought the lows of the wedge at 935am, and then found ourselves at the highs of the wedge and sold the highs for 3 more winning trades.
Now its important we remember that time is NOT on our side, so keep an eye on the clock and keep an eye on the price action. At some point here this market will be falling asleep on us and we want to be aware of it.
1015am est
News comes out on crude oil regarding a new pipeline. We think the news is bearish, however, the market makes new highs on heavy volume.
We buy pullbacks with new higher highs, following our plan, after we looked for selling opportunities at the highs of the wedge, and the high of day.
1035am est
Market personality is changing, and we know this is going to slow down dramatically very soon.
Let’s be very patient and wait to see the best patterns now, no more easy trades without rules today, stick to the plan.
1100am
We are done for the morning, lots of profit today, and on a summer Friday we close up shop after 11am so we can keep all this profit in our pockets and keep our confidence for trading on Monday.
EXCELLENT WORK TODAY!
