August 24, 2011
- in Uncategorized by schooloftrade
We’ve been waiting for this day on Gold Futures; 380 ticks of profit
745am est
89Range chart shows us a bull price channel, price wedge, and a sideways range.
We know the bull channel tells us to buy pullbacks and to buy at support if price falls.
We also know the wedge tells us to sell the highs and buy the lows of the range.
We also know the sideways market tells us the same, buy the lows, sell the highs, and avoid the middles.
We need to trade within the range using the sideways market and the wedge, and then looking at the BUYING opportunities at the lows, or with pullbacks at new highs as the higher percentage trade.
We then open our 34range chart and begin looking for intra-day levels.
We have an inside day, so this tells us more about the market’s personality.
Our plan of attack today on crude oil:
– Bull Channel tells us to be buying pullbacks with new highs
– Buy at support as price falls with a bull channel
– Price Wedge and the INSIDE DAY both act the same. As price falls we buy the support, and as price rises we sell at resistance.
– Avoid the middle of the range as best we can, i know its narrow out there
– Be patient and wait for the best opportunities early this morning
– Watch the 3 Phases of Crude Oil Inventories
– Be disciplined not to over-trade too early to the news or too late with the major news tomorrow.
815am est
Gold 89range has a bear channel that is now intersecting the major bull channel.
We have to beware that the bull channel is more important, so when the bear channel collides with these lows we need to wait for price to make a new lower low to be able to use the bear channel.
This also creates a price wedge using the bear channel highs and the bull channel lows.
We also see a sideways range, with major resistance overhead and major support below us.
Now let’s use the 34range to find our intra-day levels.
We see a very narrow range on gold 34r chart and compared to a wide range from Tuesday we see this as an INSIDE DAY that is even more concerning. Is the market tired? Or is it just looking/waiting for a catalyst this morning?
We can see more price wedges, which goes hand in hand with the INSIDE DAY personality.
Our plan of attack on Gold:
– Beware the narrow price action, looks very sloppy and consolidated
– Price Wedges and INSIDE DAY tells us the same thing. Sell the highs, buy the lows, and avoid the middles.
– The OPEN of the day is nearby, and this is another red flag and area I want to avoid.
– There is no direction bias, we have both bull and bear channel colliding at this location, so this is a transitional area.
– As price falls im buying
– As price rises im selling
– When we break the lows of the bull channel i can then look to sell retracements
– If we break the highs of the bear channel then i can buy pullbacks.
– Buying new lows all the way down to 1826.0 and then looking to sell retracements
– We will be selling all the way up to 91.0-94.5
910am est
We took 4 trades on gold and made some good money simply follow our plan buying the lows as price fell this morning.
Now we look at crude oil and the personality stinks, very inconsistent and choppy at the highs of the wedge.
The key on crude oil is to sell the highs and buy the lows. SO selling 86.00 and buying the 85.09 for our next high % trades.
925am est
Euro Futures are still trading in a range-bound market with a very obvious inside day and price wedge, which furthr confirms the same plan of attack we’ve had for 3 weeks on the euro.
Price Wedge tells me to sell the highs and buy the lows.
Inside day tells me to buy the lows and sell the highs.
Most important! The market personality over the past three weeks has told us to be very careful buying new highs, or selling new lows. We want to ‘fade’ the move, so as price rises we sell at resistance and as price falls we buy at support.
Selling 4473, and the PHOD 4497 as resistance.
Im buying the wedge lows 4342 down to 4300 and beware the BMT at 4349 may be in your way when that trade sets up.
The biggest challenge will be waiting patiently for the euro to fall to the lows so we can buy or to get back to the highs so we can sell.
945am est
We see the PLOD hold as price drops on the Gold futures.
This is a big BULLISH CLUE from the traders on gold.
If we break below the PLOD we then consider sellers in charge and we look to sell retracements.
1000am est
We’ve been very successful following our plan of attack on gold this morning, however, at this point the personality is much different.
We were in a price wedge earlier and the personality said to buy as price made new lows.
Now the sellers are clearly in control at this time (may change) and we see 1800 big round number as our final target.
We’re selling retracements with new lower lows, but be careful after 1030am today this market will likely slow down.
1035am est
Crude oil news come our bearish with lower demand and lower inventories.
We have a very consolidated market on crude oil now and we really don’t NEED to trade crude oil b/c we’ve hit our goals today.
Price Wedge is the most important, as well as the INSIDE DAY both tell us to sell as price rises and to buy as price falls.
(same plan of attack as gold earlier this morning)
