August 26, 2011
- in Uncategorized by schooloftrade
Wait for High Percentage Trades on Summer Friday’s
800am est
Crude Oil Futures are trading off the lows and off the highs of the 89range chart price structure.
We see a bull channel, price wedge, and a sideways range.
Price wedge tells me to buy the lows and sell the highs.
Bull channel tells me to buy at major support and to buy pullbacks with new higher highs.
Sideways Range gives me easy levels of support to buy as price drops, and easy levels of resistance to sell as price rises.
As price rises im going to sell FIRST and then if we can’t find an entry short, we then look for strength from the buyers and when we see a higher high we can buy a pullback.
As prices fall i will be buying at support first, but if the sellers are too strong and we break support i will then look to sell a retracement with new lower lows.
Crude Oil:
– Price Wedge
– Sideways Range
My plan of attack on crude oil this morning will be to buy the lows and sell the highs of the range we are in.
Inside day tells me to buy the PLOD as support, and then if we break below 83.01 PLOD then the sellers are in charge we want to aggressively start selling retracements.
If we start selling off we then look to buy at support first, but we need to be aware if the sellers are too strong we will wait for new lows breaking support and then sell retracements.
830am est
Gold Futures are trading at the highs of the bear channel. We see a price wedge and a sideways range.
The bear channel tells us to sell at resistance and sell new lows with retracements.
Selling the highs of a bear channel is the highest percentage we can take.
The sideways range gives us easy resistance levels to sell as price rises.
It also gives us easy levels of support to buy as price falls.
As price falls I’m buying support first, but then if we break through support i then sell retracements.
The same is true to the upside. Sell the resistance first, and then if it breaks through resistance we then buy pullbacks with new higher highs.
Gold Futures:
– Bull Price Channel
– Price Wedge (wide)
– Inside Day
Bull Channel says to buy at support if price falls and to buy new higher highs with pullbacks.
Inside day tells me to sell the PHOD as price fails to break above it.
Inside day tells me to trade inside the range im in currently. So buy the lows and sell the highs of the current trading range.
Price Wedge (we are at the highs) tells me to sell the highs of the wedge and look for the lows of the wedge to be a final profit target.
We can see the 1759.5 as the line in the sand. If we break below 59.5 we then need to sell retracements because the highs of the wedge, the outside day failure, and the break of the bull channel.
945am est
Russell Futures are trading in a bear channel and we recently saw the PLOD break and its an OUTSIDE DAY, however, the double top at the PLOD says it may fail and go back up into the range from Thursday.
Bear channel says to sell new lower lows with retracements
We want to buy at support first, and then if support breaks we then sell retracements.
1010am est
We buy the PLOD on Crude following the plan of attack from this morning’ prep.
We know look to sell retracements below 83.00 and take profit at the 82.00.
Then look to buy 82.00.
So we want to buy the lows and sell the highs on crude, and with this move down we look to sell retracements.
Buying above 84.05 will break the bear channel highs, allow us to buy the wedge lows, and show us an OUTSIDE DAY failure.
1035am est
We had Bernanke talking about stimulus and got the markets really moving quickly.
Now after 1030 the personality is changing, markets are sloppier, not as consistent on the tape.
We need to be careful.
Now it’s vital that we identify where the highest percentage trades will be the rest of the morning.
Crude Oil:
– Price Wedge
– We are in the middle
– Buy the lows 83.05 or higher
– Sell the highs of 85.45-86.60
– If we break above 86.60 buying pullbacks
– If we break below 83.00 we sell retracements.
Gold Futures:
– Price Wedge
– Bull Channel
– Sideways Range
– Sell the highs 95.0-1800.
– Avoid trading around 1800 it will be sloppy
– Buying the lows at 68.0-59.6-57.0
– Bull channel reminds us that buying will be the higher percentage trade
– If we make new highs above 1800 we buy pullbacks
– New lows below 57.0 we sell retracements
– Avoid the middle and the BMT 82.0
