crude oil day trading strategy

we begin with the 89 range chart on crude oil futures for this day trading
strategy and we can see the bear price just above the range from last Friday
(outside trading day) and we can see the AB=CD reversal zone above us, the
channel resistance above us, and the short term price wedge which has formed
below us.
The trading strategy we will use needs to keep an eye on the overhead
resistance while price rises higher because of the price channel and price
wedge we are looking for fake-out breakouts as price rises higher.

As price rises higher we are selling at major turning points such as 100.18,
100.70, 100.30.  As price moves above
these resistance levels we look for buying opportunities with pullbacks never
buying the new highs before looking for a fake-out breakout. 

If price falls off these highs we’re selling retracements with new lower
lows looking to take profit at the lows of the price wedge.  We will look to buy the lows of the price
wedge and the trigger zone support 97.32 area and if price moves lower we will
sell retracements below 97.20 which is the trigger-zone support level.
Most important thing day trading crude oil futures
is the price wedge and look for the fake-out breakout if price rises
higher.  If price falls off these highs
we look to sell aggressively down to the price wedge lows.

Crude Oil Day Trading Strategy

The
55 range chart shows us more of the same info we used on the 89 range chart,
and we now have the short term double top which gives us lots of support levels
to look reversals as price drops off the highs. 
So if we get the price to drop below 99.39 and we can sell retracements
on the way down we know to look to cover the short and take profit at the double-top
support of 98.29 and 97.85 at the price wedge lows.

Our 34 range chart on crude oil futures gives us enough detail to define our
day trading strategy with specific entry locations.  If price rises I’m looking to sell the
resistance first, but if price keeps moving higher with strong buying and the dollar
index confirming I will first look for fake-out breakout and then I will buy a
pullback with new higher-highs.

If price drops off these highs we want to sell retracements
with new lower-lows, and make sure your entry rules confirm the entry, so no
selling the lows, and no selling into major support, wait for the support to be
broken and then sell retracements. Also beware selling into the trigger-zone support
in the middle of the price wedge.  Take profit
in the trigger zone and then look for market personality to confirm where we go
next.

Our
day trading strategy for crude oil is further refined as we move to faster
timeframes, and this 21 range chart shows us another trend line that we may
have missed on the slower timeframe charts, so we add this to our list of support
levels below us.

The most important aspect of this 21 range chart is the new bull price channel, which allows us to see where the support levels will hold us up looking to sell the highs of the large range.