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Scalp Trading Crude Oil Futures after Head & shoulders Candlestick Pattern
We can see almost all the markets today have risen in price and then folded back down to the lows, showing clear head and shoulders candlestick patterns, and now trading at the lows.
If you recall, we were trading at the lows yesterday as well across all markets.
The key today are the candlestick patterns. We see all of our markets reversing off the highs and now trading at the lows.
– Watching the 34-range chart we see us trading just below the TRIGGER ZONE so we have 2 different options
o Buy the lows if we re-enter into this bracket above 2628
o Sell the breakout into the bracket below us looking for entry below 2587
– We entered our first trade of the day on the Euro buying the lows of the trigger zone, with an entry above 2620
o I didn’t follow my rules, and prematurely got into a trade with our 13-range trend lines in our way
o A good lesson to learn this morning…check your rules first!
o We got out for a scratch, losing a few ticks in the process, but much better then a full 6 tick stop.
– The 34-range chart is now trading below the quarterly lows, and below the swing low level at 72.52 that has been holding us up for weeks now.
– No more horseshoe pattern now that we’ve broken those lows
– We also see a channel down on the 34-range, and we are trading at the lows of the channel
o Buy the lows above 71.86
o Sell the highs below 71.00
The biggest concern for the short sellers right now is the lack of support due to these new lows.
– The key on crude oil today will be getting farther away from the downward channel line around 71.30
– 34-range chart shows the gold trading at all times highs yet again today around 1243.0
– We notice 2 things
o a bullish channel on the 34-range and we are trading at the highs of the channel
o sideways trading range from 1243 down to 1231, and we are at the highs of that range
o 2 options
Sell the highs around 1243.0
Buy the lows around 1231.0
o Need to be careful because we can see a lot of support at 1240, so look for the price break down if we can get below that level.
o Be careful with the scalps buying above 1243, with that trend line overhead that will be a tough spot.
– 34-range chart shows us trading down to the lows of the trading range this month
– We also notice that 600.0 is our pivot
o Head and shoulders pattern shows us the reversal and the break below 600.0
o So we will buy above 600.0 and sell below 600
– We also see that we are in the middle of the bracket from 584.3 at the lows up to 600.0 at the highs.
o Sell the highs at 600
o Buy the lows at 584.3
