Crude oil day trading strategy

Crude oil day trading strategy begins with the slowest timeframe
first, the 144 range and this shows us the price action trading in a new range
above the previous highs and we’re going to treat the new range as the most
important clue. If price moves higher we buy pullbacks and if we drop below the
range we sell retracements. Sell the
highs of 106.40 and buy the lows of 104.01 and if price breaks out look for fake-out
breakout first and then buying pullbacks and selling retracements.

We’re going to use the current trading range from 106.48
down to 104.61 and trade inside this first.
We see short term support at 105.30 which makes an excellent target if
we and sell the highs, but we won’t be trading the middle of the range so it’s
not THAT much of an important level for us.
The big key is if price falls below PLOD we have a target of 103.25 as
price drops to the next level of support.

One concern we have is rising prices. Where will price go next if we get higher-highs? We can see the price channel highs way up
around 108.00 and we may have an AB=CD resistance around 107.65 we will have to
wait and see if price can make it higher.

We also took some time this morning to load up a daily chart
with 365 days of price data, looking for additional levels of resistance
overhead that we can use to be prepared for rising prices. The daily chart was too slow, didn’t give us
enough detail, so we used a 60 minute chart and found additional resistance at
106.79, 106.97, and then a BIG GAP UP to 111.75 so that tells us price can
easily explode higher if we can see price get and stay above the 107.00 price
level.

We now know there is the PHOD and the major
60-minute resistance levels overhead that make buying pullbacks a higher risk
trade, so look to sell the highs and look for fake-out breakouts at the PHOD. If price moves quickly above the 107.00 we
can indeed buy pullbacks but make sure those buyers are strong.

The 34-range chart shows us much more detail, the INSIDE trading day, the new bull price channel, and the additional short term trend lines which will all act as support we will use this morning in our day trading strategy.

The 21range chart shows us the double top at the highs which gives us easy support to use below us and we see the new short term bear price channel which will tell us where to look for the best entries short. Sell the highs of the channel as the highest percentage trade.