September 23, 2011
- in Uncategorized by schooloftrade
Plan your trades, and trade your plan; Crude Oil Futures trading strategy
Today’s a Friday without any major scheduled news, so we know that today will be all about capitalizing on the opportunities we see in the time we have.
Expect price action to be slow after 11am, and without any major news, we can expect there to be periods of good price action, and poor price action.
We need to be patient for the best opportunities, so looking for new lower lows, increasing speed, market personality.
810am est
Crude Oil making new lows this morning.
We have three price structures as clues:
Outside day tells me to sell retracements with new lower lows, as well as keep an eye on the failure coming back up into the PLOD.
Bear Channel tells me to sell the resistance as price pops back up. Sell the highs of the bear channel.
Strong move down reminds to be very careful trying to sell at the lows, I will wait to sell retracements with new lower lows, and staying patient looking for exhaustion and the price reversal off these lows.
840am est
We are seeing momentum going oversold very quickly on crude oil, which reminds us to be very conservative with trade management.
We’re not going to get those big consistent moves out of the market right now, so take your profit quickly.
855am est
Crude Oil market personality is gone now. We got 15 minutes of good movement earlier this morning, and we are trying to anticipate the next high percentage trade.
The tough part is staying patient and not forcing trades without your rules confirming.
I took an impulse trade at 855am trying to buy the breakout, and it was a good example of what NOT to do when this situation is happening.
Wedge patterns on any market tell me to fade the breakout, so stay patient.
950am est
This market stinks! 1 tick new highs and it fails, 1 tick new lows, and it fails.
We need to sit on hands and wait for some better price action.
1000am est
We found a bull price channel, and we are going to look at buying the lows if we get the pattern and personality we need to feel confident.
The market is slowing down quickly, even though it is still early, its a Friday with no major news so we will be cautious.
