July 9, 2012
- in Uncategorized by schooloftrade
News Prep & Crude Oil Technical Analysis for New Traders
800am EST
Our plan this morning is to get back into routine of being a
successful trader, following our trading plan, anticipating moves before they
happen, and planning for the news this week.
The worst thing we can do on a Monday is to jump into our trades too
early, so be patient today and get that confidence back by following your
morning routine in the advanced course.
successful trader, following our trading plan, anticipating moves before they
happen, and planning for the news this week.
The worst thing we can do on a Monday is to jump into our trades too
early, so be patient today and get that confidence back by following your
morning routine in the advanced course.
The heat map shows us some easy clues today. First, the dollar index is trading at -0.2%
which means we can use the correlation, but if it drops to 0.0 or 0.1% we no
longer trust the dollar index correlation, so keep an eye on this today. Second, we see if there’s anything really
moving this morning, which means we should take a look at those markets
first. This morning we don’t see much
volatility in the markets we trade most, so it tells a new trader to take their
time and do the full prep this morning. It
also tells an experienced trader to take profit quickly, expect sideways
ranges, and the high-percentage trades that come along with it.
which means we can use the correlation, but if it drops to 0.0 or 0.1% we no
longer trust the dollar index correlation, so keep an eye on this today. Second, we see if there’s anything really
moving this morning, which means we should take a look at those markets
first. This morning we don’t see much
volatility in the markets we trade most, so it tells a new trader to take their
time and do the full prep this morning. It
also tells an experienced trader to take profit quickly, expect sideways
ranges, and the high-percentage trades that come along with it.
830am ESTCrude Oil Futures are trading just off the major
swing-low support of 77.28 and we can see a recent price wedge has developed
which we will use as our biggest clue for high-percentage trades today. Crude Oil is trading inside the range from
Friday so we know that trading INSIDE the range will be the high-percentage
trades today.
Our trading plan for this
morning will be to trade within the current range. We are inside day, have a price wedge and
lots of resistance overhead with support below us. If price action moves out of this range we
are suspicious of the fake-out breakout so we will trade by selling the highs,
avoiding the middle, and buying the lows of the short-term trading range.
