Live Crude Oil Day Trading; Chasing Trades, Trailing Stops, Reversals at High of Day

As you know, we always answer lots of questions in our live trade room, and today’s video captures some of these questions…

• When do we chase after our entries?
• How do we manage our trades?
• What makes the market reverse?
• When will the HOD/LOD hold?

These are some of the questions we covered…but wait…there’s a bonus!

We also took a LIVE trade on crude oil with our 2-step pattern and made $300usd in minutes…check it out.

How do you chase a trade? Or should we avoid this?

– Chasing a trade = taking an entry on a trade that has already triggered

o Later we enter the higher the risk
o Professional day traders will have a simple RULE that tells them how far away from trigger they will chase after it.
o My rule of them = 4-5 ticks, I won’t chase after a trade if it exceeds 5 ticks from where my best case scenario was
o We don’t like chasing trades b/c the move at that point has already passed, its better to wait for the next pattern and be READY!
o You also need to remember your rules when chasing a trade

 Do you still 6 ticks of room? Can the trade still run and fill your targets?
 Follow all of your rules to make sure your NEW entry, even though you chased to get in, is still agreeing with your rules.

Medium Timeframes

– Medium timeframes are VITAL to identifying the low risk from the higher risk trading opportunities
– Green and Blue background charts

o Don’t use them for patterns
o Use the trigger lines for support/resistance

How do we handle all this action? All the charts?

– Things move too quickly!
– How do I keep up?
– Remember

o As a guest you will be trained on all of this
o You will know what to watch, and when to watch it
o As a guest this can be a little too much to handle sometimes, but remember you will be trained.

– As a member

o Teach you specifically what and when to watch it
o Teach you the pattern, rule, entry triggers, etc.
o As a member you will learn it all!

How do we trade a sideways market?

– Look for patterns on slower charts
– Take our profit early and often (don’t let the market take it back)
– Buy the lows, and sell the highs
– Even though the market may blow through a trend line where we take profit, we still need to remember that sideways markets will be less likely to consistently break support/resistance, so we use caution and we take our money and run!

How do we train our stop?

– Click on the stop order on your DOM and manually move it to where you want it
– We like to automate our stops, so use an automated trade management in NT.

o Set this to move my stop to my point of entry when I fill my first target

What factors contribute to the HOD/LOD holding? Same as the factors for a Price Reversal

– Speed of the tape (pace of tape indicator)

o Speed will slow down as we approach the lows

 Tells us fewer traders are interested in this price, tells us we’re going to see a bounce off this low.

– Momentum Indicator

o Momentum will be pointing against the short term trend
o “snap” in the opposite direction (at the lows, or when the price reverses)

– Size of the orders on the tape

o Big money buyers enter for a long!
o Big money sellers enter for a short!
o Watch the filtered time and sales window for the big money to come in against the short term trend.
o SPEED should start to rise again, giving us confidence that these big money buyers are bringing the entire market along for the ride long with them!

– Condition of the orders on the tape

o are they coming in faster? Slower?
o Are they small buyers? If so, ignore them!

Pace of Tape Indicator:

– Measure the SPEED of the orders coming into the market
– Does NOT count volume, does NOT act as a volume indicator, does NOT show big money

o Big money shows up on the filtered time and sales window.

How do we know when the market is too slow?

– Watch the pace of tape indicator
– Red on the POT = slow speed, so we want to be careful.

o Rising RED POT would be the best option if you want to trade during the slower times of the morning.