'Trading is a process of observing the market's action until such a time you can find and form trading ideas and get involved.'**
Wednesday, August 28, 2013
Better to Trade in the Overnight Session
It's better to trade in the overnight session (for Futures markets) because most of the participants are busy snoring. Not much noise and the market moves are quiet and smooth. And you can capture the big move in the overnight session because that's where the European and the Asian markets are active. Just take a look at the chart below for the Crude and the Gold and see/compare the movement from the overnight session (rectangle area) and the regular open (circled area). Just don't sleep and you can make a decent trade. You can have your decent sleep after you make your trade in the overnight session and let the suckers fight it out in the regular market.
Tuesday, August 27, 2013
Overnight Crude and Gold Trade Setup
The commodities made a nice run in the overnight session due to concern in Syria. Both the Crude and the Gold made a stunning move upwards. The Gold formed a shallow cup with a handle, while the Crude went up all the way to the hill and still climbing as of this posting. Seems it won't stop going up till the war breaks out.
Tuesday's Market Update
The market made an unprecedented move early in the overnight session due to main concern in Syria. The Gold formed a cup (or a double cup?) with a handle pattern as shown from this 15 - minute chart. While the Crude formed a shallow cup. The Nasdaq made an inverse head and shoulder pattern that was originated from yesterday's session.
Monday, August 26, 2013
Monday's Market Update
The market made a different kind of moves today partly because its Monday, the first trading day of the week which is usually a gauging sentiment. The Nasdaq futures drops hard in the middle of the trading day when it move upwards into the open. The Gold did not do any potential move except that it induce more volatility. Same with the Crude, though it gap up in the overnight open, it struggled for most of the whole trading day.
Saturday, August 24, 2013
Gold Update
While the main market indices are struggling, the commodities especially the Gold is silently making its move to the upside. As can be seen from the daily chart below, it continues to defy the 'shorters' (the bears) and they are getting squeezed. The way I can see from my crystal ball is that it might reach the 1400 level and might consolidate a bit and then on the way to 1500.
Friday, August 23, 2013
Friday's Crude Trade Setup
A powerful reversal from the Crude market today. Notice that bullish hammer followed by another bullish candle that exactly move up from the hammer candle's closed price. Capturing this kind of move needs a lot of attention from the price action, and you need a wider stop.
Friday's Gold Trade Setup
Gold made a nice run from today's trading. Nice consolidation as shown from the rectangular area. This is where patience in waiting for the right opportunity pays off.
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