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Horseshoe Pattern earns BIG Crude Oil Profit

Horseshoe Pattern earns BIG Crude Oil Profit

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Published by Joseph James
We finished a record-breaking week in our live trade room with another slow start and a BIG finish to our day.
After the big drop in Crude Oil over the past 36 hours I wanted to get a ‘fresh’ look at the market, so I used an 89-Range chart to define a ‘Horseshoe Pattern’
This simple pattern gave us the clues we needed to make our profit today.
Click here to learn about the Horseshoe and see how it helped us earn over 300 ticks again today!
We finished a record-breaking week in our live trade room with another slow start and a BIG finish to our day.
After the big drop in Crude Oil over the past 36 hours I wanted to get a ‘fresh’ look at the market, so I used an 89-Range chart to define a ‘Horseshoe Pattern’
This simple pattern gave us the clues we needed to make our profit today.
Click here to learn about the Horseshoe and see how it helped us earn over 300 ticks again today!

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Published by: Joseph James on May 06, 2011
Copyright:Attribution Non-commercial

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05/06/2011

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Schooloftrade.com Market Commentary 5.6.11
2 reasons why we always follow fast track rules:-
 
Set a good example as a foundation to learn the CORRECT way-
 
You can feel confident trading these along with me as a new member or as a guest-
 
I will call every pattern
o
 
Identify the pattern as high or low risk, and tell you WHY
o
 
My experienced members can learn and earn more every day
o
 
My NEW members can learn more about the difference between the types of patterns
o
 
My guests can feel confident entering trades when I call them as HIGH %, or low risk820am est-
 
Were going through the motions this morning, getting ready for battle-
 
We have very important 830am news-
 
NonFarm Payrolls often times dont allow us to trade4 until after 845am-
 
Sometimes the speed and the whippy personality make it very tough to have confidence-
 
Will make you FEEL like you MUST take a trade-
 
There is no short term trend on the DX 06-11 contract
 
-
 
Sideways dollar = no directional bias = sideways ranges = trade both sides-
 
This may change after this news comes out, so we will watch the dollar all morning, but right now, there isno direction on the dollar.-
 
How do I profit from this?-
 
Sideways dollar = trade inside the ranges on the markets I trade-
 
Find the highs and the lows of the range and buy the lows and sell the highs.-
 
When the dollar stays flat, we stay inside our ranges, so use that info to profit-
 
When the dollar trends, we break out of these same ranges, so look for breakouts and buy pullbacks/sellretracements.840am est-
 
We saw confusing information from the 830am news-
 
Jobs got better, but unemployment got worse-
 
Dollar jumped, but then came back down again, so pretty much where we left off -
 
Now were prepping the crude oil-
 
34range chart on crude oil:
o
 
Sideways Ranges in the white box
o
 
Price Channel in orange trend lines
o
 
Price Wedge in the orange trend lines-
 
We are above the PLOD = strong bullish sign in the market, look to buy pullbacks with new highs-
 
Lets plan our attack on the crude oil-
 
The dollar is flat, so sell the highs and buy the lows. Sell resistance and buy support-
 
If price rises:
o
 
Selling the HOD, selling the high of the wedge, the highs of the channel around 100.00
o
 
Yikes!!! The 100.00 level is the KING of Big Round Numbers!
 
o
 
We have to be cautious around 100.00, it will act like a magnet
o
 
Im tempted to avoid the 100 level all together, it wasnt for the highs of the ranges.
o
 
A
s price rises im buying pullbacks as resistance turns into support, when we make new higherhighs-
 
If price falls:
o
 
Im buying first, selling retracements as support is broken and becomes resistance
o
 
Im buying the lows of the channel at 98.00, buying the PLOD as support, and selling below thePLOD when it becomes resistance
o
 
We have the BMT at 98.82, and we want to avoid trading around the BMT
o
 
Im buying the lows of the sideways ranges at 96.00, 95.00 etc
o
 
I also have some major levels of support marked from our 89range chart at 94.86, 92.65, 90.66,88.77
o
 
855am est-
 
Weve had very little movement after the 830am news-
 
The dollar has now retreated back into its earlier trading range and the markets on gold and crude arelooking for personality925am est-
 
Great example of how we made the right trading decisions, but this market just didnt want play nicewith us today-
 
Lets wait for the next high % area and look for a better view of price action.-
 
Where will our next trade be on crude oil?-
 
Buy the lows of the channel at 98.25, also the PLOD-
 
Sell the highs of the channel and the highs of the range at 99.90945am est-
 
We continue to make money following our plan-
 
We arent getting as much profit per trade as we normally do (no 3
rd
target getting filled) but werefollowing our plan and thats all we can do.-
 
Weve been selling the highs and buying the lows with a sideways dollar, so lets keep it up!!-
 
Plan our attack on crude oil:
o
 
If price rises im selling the highs of the range and the highs of the price wedge/channel at 99.89,99.70
o
 
If price falls im buying the lows/support levels at the lows of the range, lows of thewedge/channel at 98.25, 98.571025am est-
 
We continue to wait patiently for these markets to give us high % patterns to trade.-
 
We see a double top on crude oil and the 100.00 around the OPEN tells us to expect rising prices as wefinish the morning.
 
1045am est-
 
WOW what a day, what a week, what a start to a new month!-
 
Once again, for the third day in a row we have trouble early in the morning but the late morning movesmake us a KILLING!1100am est-
 
Beware trading right now, even though the price is moving higher/lower-
 
Read the tape, take a demo trade and SEE/FEEL how the price action is different.Lets wrap up our week with a final rundown of the most important aspect on our charts:
Gold:
-
 
If prices rise:
o
 
Im buying a pullback above 94.8, taking profit at the next major level of resistance
o
 
We also have the highs of the channel, which will make for an excellent place to take profit aswell.
o
 
The 89range chart shows overhead resistance at 13.9, 22.0 and I will be using that as a final profittarget if we get long with a pullback
o
 
A
s price rises im selling the highs of the channel at 1500.00
o
 
Beware price getting sloppy around 1500
o
 
Im selling the resistance first, and then buying pullbacks at new higher highs-
 
If price falls:
o
 
Buyer first at support, then selling with retracements when we see new lower lows
o
 
Buying the lows of the wedge in the yellow trend line around 1470.0
o
 
Im buying the LOD at 62.5, and the lows of the channel around 45.0
o
 
Im buying major support at 45.0, 11.6 and selling retracements with new lows-
 
A
void the BMT on Gold @ 1487.2 this will be a very sloppy area on
A
NY market
A
sk yourself these questions:-
 
Dollar trend? No trend = sideways = sell the highs and buy the lows = stays inside the range-
 
There is no news to worry about-
 
We have major resistance and support levels above and below us (22.0, 13.9 / 45.0, 11.6)-
 
Price wedge using the blue channel and the green trend line to create the wedge (we are in the middle of the wedge-
 
Price channel in blue trend lines (in the middle)-
 
Sideways ranges in the white box from 13.8 down to 62.5 (no DX trend , sell the highs and buy the lows of these rangesNow lets plan our attack today:-
 
If price rises:
o
 
Sell the wedge highs @ 98.5, also the HOD
o
 
Sell channel highs @ 04.5

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