August 25, 2011
- in Uncategorized by schooloftrade
Mini Russell & Gold helped us earn +420 ticks day trading
Summer time trading means be patient in the early morning and be disciplined in the late morning.
We expect to see volume early with 830am news, but then looking at volume dropping quickly after 1030am.
The GDP tomorrow morning will have major money managers on the sidelines earlier than normal today.
805am est
Gold Futures are trading in a bear price channel and price wedge on the 89range chart.
We marked up the levels below us un case price tumbles again we will be ready.
We marked up the levels above us so we know where to look for selling opportunities.
We know the bear channel says to sell the new lows with retracements and to sell at resistance as price rises.
We know that if we break below 1694.3 we then have sellers in charge and we need to sell along with them.
As price rises im looking to sell at resistance , and then if we break through resistance I will then consider buying a pullback.
34range on Gold Futures shows us:
– Outside day, below the PLOD, but transitioning into an INSIDE DAY
– Trading at the 34range BMT (sloppy)
– At the Highs of the Bear channel
My plan of attack on gold today:
– Be patient this price action is whippy
– As price rises im selling at resistance first
– Then im buying a pullback with new highs and buyers in charge
– Im avoiding the 34r BMT at 1735.0
– If we break above the PLOD 1744 i then consider buyers in charge and we start looking to buy aggressively.
– If we fail to break above PLOD 1744 we then will sell aggressively.
– If price drops to new lows im selling retracements
– If price drops to new lows I will also consider a price reversal and buy at support if we see the sellers are exhausted.
835am est
We’ve had two distinct opportunities to trade gold this morning, both of which were too sloppy to make more then the first two targets.
We sold the channel highs and then we bought the pullbacks after the bullish news at 830am.
900am est
We finally got the big winner on gold!! It took 5 trades to do it, but our plan always makes us money.
Now we have a price wedge, and the market appears to be stalling ahead of the PLOD.
This appears to be either from LOW VOLUME or the BUYERS may not see value any higher than 1744.00.
We will keep a close eye on this, but right now we’re seeing this as a failure to break the highs, so look for new lower lows and look to sell.
Below 1732.7 we start looking to sell retracements.
Remember we have a bull channel on the 34range, so look to buy at that support first, then reading tape if the sellers are in control we then look to sell once we break that support.
920am est
We made a HUGE winner on gold to further exemplify the value of folling the plan.
Now we have another wedge and we need to buy the lows and sell the highs of the wedge.
If price rises im selling 39.4- area (might be a little lower or higher)
If price falls we buy the wedge lows at 25.8-23.1
If price breaks lows below 23.1 we need to see where the channel highs are in relation to that level. The later it happen the lower the highs of the channel will be.
We know that below 1719.0 we should be easily inside the highs of the bear channel and we can start selling more aggressively.
935am est
Euro Futures are still trading sloppy in a sideways price wedge.
Our plan of attack on the euro is the same as it was earlier this week.
Buy the lows at 4403-4396-4374-4361
and sell the highs at 4472-4478-4497
Russell Futures have a bull channel, price wedge, and we are in the middle of the range.
This tells me to buy pullbacks with new higher highs, and to sell at resistance overhead, buy at support below.
Avoid the middle around 87.5 BMT
I will buy 73.9, 70.8 and then look to sell retracements below those levels.
I will sell 701.9 first, and then look to buy a pullback above that level.
