Learn How to trade futures with the schooloftrade

Today we saw some sluggish volume in the market, but were still able to scalp 1 trade off the crude oil market (Symbol CL) (SCALPING FUTURES DAY TRADING VIDEO ). The crude oil market today stayed in a tight dollar range of $64.40 – $65.40 for the first few hours of electric trading, but once trading commenced at the open outcry pits at 9:00am EST volume as well as buyers began to enter the market, pushing prices higher into the lunch hours. With the significant rally in price, we looked to capitalize on this trend by taking a breaker long, or a 2-step short on the Crude Oil, and ended up taking a trend reversal short, for +$80.00 on 4 contracts. To learn more about trading Crude Oil futures, watch this free CRUDE OIL FUTURES DAY TRADING VIDEO

Our first and only trade of the day came after the open of the pits as well as the U.S equities markets at 9:20am EST. We noticed the trend was long throughout most of the morning, and looked to capitalize on the volume increase going into the lunch hours. At 11:30am EST we noticed the trend was consolidating around the $67.00 price level, and began to identify a possible trend reversal trade with the 2-step short. This is exactly what we did, after price gave us a swing low below our automatic line levels indicator, we took the Crude Oil short with a basis of 67.20 at 11:30am EST (SWING-HIGH SWING-LOW TECHNICAL ANALYSIS DAY TRADING FUTURES VIDEO). After executing the trade, we noticed the stochastics had curled in our favor, and watched the ticker tape to see if we would get some sellers following through on our trade. With our automatic trade management via NinjaTrader already in place, we were able to lock in profits at +4 ticks (2 contracts) before closing out our trade, with a profit of +8 ticks ($10/tick) ($80).