The 3Dimensional Trading Breakthrough

Brian Schad
To continue with the Wheat Example from above, tomorrow will be S.D. + 10 and
the momentum is up going into tomorrow’s trade. This means if I have any open
position in the market, it should be long.
Let’s make our calculations for tomorrow. The first step I take is:
1. Determine which way momentum has trended in the prior trading
session (Did the market continue 55% / 70% / 110% / 150% of the prior
day’s range up? Did it go down…? If it did neither, and momentum
was up coming into today, then momentum will be up going into
tomorrow).
2. On a piece of scratch paper, or worksheet, write down the commodity
and an arrow next to it for directional reference going into the next
trading day.
Market / Symbol
Dec Wheat / WZ
↑ (Momentum)
3. Write down the prior day’s high, the prior day’s low, and the close (off
to the side).
Yesterday’s High $316/bu. C:$315¼
Yesterday’s Low
$312½/bu.
I will personally write down the close, because I like to know if it has closed on or
near the high of the day for a possible “Ooops” buy/sell trading signal. In this case
the market has closed near the high of the day, which tells me I should prepare for
a possible “Ooops” sell signal, dependent upon the market’s day session open.
4. Calculate the range for the day by subtracting the prior session’s low
from the prior session’s high.
$316/bu. - $312½/bu. = 3½¢ (range)
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