Wacky Wednesday and Sideways Markets Day Traders Look for Clues

– dollar index is trading in the reversal zone, near the BMT, and very sloppy this morning.  We had a what appeared to be a move above the ‘reversal-zone’ on Tuesday, but when that fails we then know the ‘reversal-zone’ now looks more like a ‘chop ‘reversal-zone’ than anything else.  I added a price alert indicator to this chart to alert me to when the price moves to the highs or the lows of this range.  I will try and be patient waiting for trades until we move to the ‘extremes’ of the range on the dollar index.

– crude oil futures trading inside day at the highs of the range and we have some easy clues for both directions today.  If price rises I’m selling the PHOD as resistance first, and then being very careful trying to buy pullback above the PHOD because of the highs of the price channel.  Sell the highs of the price channel, and look for price to drop back below the PHOD for a nice big short opportunity as the buyers fail.   Selling the resistance above the PHOD because of the price channel highs around 89.86, 90.17, 90.54, 90.91 are all levels to sell with as price rises.  If we break above 91.00 then we can buy pullback.  If price falls from these highs I’m selling below 88.12 into the price wedge below us.  Look for profit on that short trade below the price wedge highs around the 87.00 price wedge lows.  If price keeps going lower I will buy the price channel lows and the PLOD at 85.74.  if price makes it lower than 85.74 I will first look for the fake-out breakout-out breakout AND BUY when it comes back up above the PHOD.  Then with strong sellers I will sell retracement down to the next major support of 83.96 if we stay below the PLOD.

– Mini-Russell Futures is trading at the highs of Tuesday’s range at the PHOD, making this an inside day, but ready to turn into an outside day. We have a trend line overhead as resistance and the ‘reversal-zone’ is below us, just below the price channel lows.  If price rises I’m buying above the PHOD as it turns OUTSIDE DAY, but beware buying too close to the trend line as overhead resistance.  I will sell the trend line resistance along with the 716.8 resistance overhead.  If we break above the 716.8 I will look for the fake-out breakout first and then buy a pullback with new higher-highs.  Final target for the long trades above 716.8 will be the next level of major resistance which is 731.5 and the price channel highs.  If price falls to new lower-lows we will sell the highs of this short term bear price price channel below 700.00 big round number, which is also below the 89r trigger line as support.  Selling below 700 you will take profit at the lows of the ‘reversal-zone’ around 687.0 and then entry short with retracement below the ‘reversal-zone’ lows with the final target the PLOD.  I will then buy the PLOD at the lows of the bear price channel.

I’m always improving this prep, I appreciate your feedback, please post it here!