c


   



830am est

Let¶s begin our day reviewing the dollar index:

89range chart shows me at the lows of the major price wedge.

We also see a sideways range from a recent swing high and swing low.

We see major support below us, and the BMT is above us.

Three scenarios to consider:

-à rice may drop to the major support of 72.860

-à rice may rise to the BMT/Trigger Line
-à rice may trade sideways inside the current range

If price rises off these lows we look to sell the markets we trade.

If price trades lower, we look to buy at support on gold, crude, euro, Russell, etc.

If price trades sideways we will also look to trade a sideways range on the markets we trade.
Buy the lows and sell the highs, avoid the middle.

So the 89range chart tells me there may be 3 possible options for the dollar.

So which one is higher percentage? What is the short term trend telling us?

89range shows me the major levels of support/resistance, and the price structure (wedge,
channel, sideways range)

Now we use a 13range chart to see the SHORT TERM TREND.

The 13range chart shows us a strong bear price channel, a sideways range and a bear price
channel inside the range.

We now know that dollar is trying to keep dropping. We add a price alert to 73.815 (swing high)
to mark the line in the sand where the dollar will be assumed to have broken this bear channel
and we assume it will either rise or trade sideways.

÷




 




 

-à If the dollar keeps dropping inside this bear channel we want to be buying pullbacks on
the markets we trade.
-à If the dollar trades sideways above 73.815 we need to keep BOTH sides of the market
open, look to sell the highs and buy the lows of a short term trading range.
 -à If the dollar reverses above 73.815 we assume the trend is broken and we will then
assume price on the dollar will try and test the big round number of 74.00, and we will
look for selling opportunities on the markets we trade.

915am est


 




 




 
  




Now lets plan our specific attack on crude oil futures.

89range chart on CL 07-11 shows a number of price wedges, sideways range, bear price channel,
and many levels of support/resistance above and below.




 




 
  




 

 

We see the BMT and the 100.00 Big Round number overhead, which leads us to believe we may
see 100.00 tested sometime this morning.



 
 

!





   
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Now we know the price structure and we have an opinion on where price is going, we now use a
faster timeframe to specify the exact entry locations.


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-à Bear channel tells us to keep selling retracement with new lows

-à c  



!

) 







 


 






-à rice wedge tells us to buy the lows and sell the highs of the wedge.
-à HOD is above us, LOD is below us, makes this an inside day. (we tried to make new
lows once, and failed, so this is a sign of things to come) expect another test of new lows
in the near future.
-à The BMT is above us at the highs of the channel, this will act like a price magnet

 
 

 #










 
 

-à ‰void the 99.00 big round number

-à Sell the highs of the price channel at 99.30, 98.87, 98.80
-à Sell the highs of the range at 99.30
-à Sell resistance at 99.49
-à ‰void the BMT 99.69, excellent profit target, sloppy entry area
-à Sell the channel highs and the range highs at 99.85
 -à I will avoid the 100.00 big round number, is also the BMT on the 89range chart. Very
risky!
-à Sell the HOD 100.30
-à Sell the highs of the wedge, 100.30
-à Sell the highs of the range at 100.67, and 101.14
-à Remember, as price rises im selling first at resistance, and then buying when that
resistance becomes support.
-à I will not buy at the highs, I will buy with a pullback.


 


-à Im buying at support first, then selling retracements when that support becomes
resistance with new lower lows.
-à ‰void the OEN at 98.48
-à Buy the lows of the wedge, using support at 98.33
-à Buy support at 98.11, 97.95 , and 96.70 major support below us.
-à Buy the lows of the price channel 98.11, 98.00, 97.90, 97.85, 97.80

*þ
 

 


 












  

 

 
 




 





=
c

Buy the lows of the price range, buy the Low of Day, buy the lows of the price wedge.

The revious Low of Day is a price level we want to use here, buying long above LOD and
selling short below LOD.

(%%%
c

New lower lows on Crude Oil 07-11 and we sold retracements on the way down.

(%%
c

rice chopping around the lows of the channel, LOD, and lows of the range. We had a difficult
time defining WHO was in control here.

We sold short with new lower lows, wave pattern short, and we then bought the lows with a
2step price reversal pattern.

Finally broke back above the LOD at .33 after sloppy price action chopped us up for a little
while.
Once we break back above the LOD we assume the trading range above us is acceptable which
will result in sideways trading. Now looking to buy the lows and sell the highs of a specific
trading range.

(%$
c

rice action gets sloppy here now. We know that the end of morning will sneak up on us and we
keep a close eye on the time.

We can easily tell both gold and crude oil is losing speed, volume, and direction.

We have lost confidence in this price action, so now we wait for the best patterns to come our
way, time to protect capital and be VERY selective with our trading.

((%%
c

We waited for price to make it through the middle of the range.

We cant risk trading in the middle, not with price action looking like this.

We sell the highs of the wedge with a 2step price reversal pattern but it was so sloppy the market
on crude could barely break the 4range BMT«yikes!

Finished up our day with an easy wave pattern short

Total today = 222 ticks, 4 contract, great day!

÷
 












 


 

 

 

 

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