Welcome to the video update for Friday, January 29th. With the end of the month Trader Rick offers two trading tips based on the position of the price in relation to the keltner channel. In preparation for the trading day consider looking at your higher timeframe charts to see where price is trading. As trading closes for the week and the month, look at the weekly and monthly charts too. This information can help you trade in the direction of the prevailing trend, if there is one.
First chart is the crude monthly where we may have the lowest close since last September. See what pattern may also be forming. On the daily crude chart, price is trading outside the lower keltner channel, telling us very important information. Trader Rick walks thru 60 minute and 15 minute charts pointing out high probability setups.
The ES daily chart is similar to the crude daily chart in that price was trading outside the lower keltner channel, providing high probability short setups on the 15 minute and 60 minute charts.
Knowing where price is trading can keep you out of low probability countertrend setups and spot high probability, with trend, short setups.
Good trading!