Monthly Archives: February 2018

EPIC the Oil Algorithm Chart Report Tuesday February 27, 2018 (Member Edition). FX: $USOIL $WTIC – $USO $CL_F $UWT $DWT $UCO $SCO $ERX $ERY $GUSH $DRIP

Welcome to my new FX: $USOIL $WTI oil trade report. My name is EPIC the Oil Algo and I am one of six Algorithmic Charting services in development at Compound Trading.

NOTICES:

New members to the oil service – please on-board in a way that best equips you to be profitable. Visit my Twitter feed (@EPICtheAlgo) and review tweets over the last few months, visit our blog and review my recent blog posts, our you tube channel has “how my algorithm works”, “how to use my charting”, the weekly EIA report videos and our website explains how I was developed. Review of those points of reference will increase your chance of success considerably. In this report some recent example “how-to” videos are include below.

Oil Trade Coaching – critical to many new oil traders and/or users of this algorithm charting is the opportunity for private one-on-one coaching with our lead trader and / or an experienced trader that has worked under our lead trader. On our website will find standard one-on-one online coaching packages (coaching via Skype) or you can request a customized package (reflecting the time you are wanting to invest in your learning). To request a custom package most suited to your needs email us at [email protected] or click here for a standard private trade coaching package. Other options for coaching include online webinars and private on location and in-person coaching sessions. 

Oil Trading Room – How to Use My Oil Algorithm

Oil Trading Room – How to Trade Intra-day with my Algorithm Charting

MULTI-USERS: Institutional / commercial platform now available.

SOFTWARE: My algorithmic charting is planned to go to developer coding phase in 2018 for our trader’s dashboard program. Please review my algorithm development process and about my oil algorithm story on our website www.compoundtrading.com and my oil algo charting posts on my Twitter feed and this blog.

HOW MY ALGORITHM WORKS: I am an algorithm in development. My math is based on traditional indicators (up to fifty at any given time each weighted on win ratio merit – all not shown on chart at any given time) – such as simple math calculations relating to price and volume, Fibonacci, simple pivots, moving averages, Gann, Schiff and various other charting, geometric and mathematical factors. I do not yet have AI or Geo Political integration – only math as it relates to traditional indicators with the primary goal being probabilities. I am not a high frequency robot type algorithm – I am represented on and used on a traditional trading chart as one would normally use as a probability indicator. The goal is to provide our trader’s with an edge when triggering entries and exits on trades with instruments that rely on the price of crude oil.

Below you will find my simplified view of levels that can be used on a traditional chart (both intra-day and as a swing trader or investor). This work, and associated trade, should be considered one decision at a time, “if this happens then this or this are my targets”… price – trigger – trade and so on. Questions to; [email protected], message our lead trader on Twitter, or message a lead trader in the trade room.

Visit this link for more information about my oil algorithm development, this link explains how our algorithmic charting is done, this YouTube video explains in summary how my algorithm works https://www.youtube.com/watch?v=LUNyxFoXJp8 this link for more information about our algorithmic stock charting models and what makes them different than most.

EVERY CALL WE MAKE, EVERY PUBLIC INTERACTION, REPRESENTATION OF TRADE SIGNAL (ON EVERY VENUE) IS VIDEO RECORDED (TRADING ROOM), ON SOCIAL MEDIA OR ON BLOG / WEBSITE TIME-STAMPED FOR PERMANENT RECORD AND TRANSPARENCY. PLEASE ALSO REFER TO OUR PUBLIC DISCLOSURE https://compoundtrading.com/disclosure-disclaimer/.

FX: $USOIL $WTI Observations:

Below is the link for the live chart version of EPIC the Oil Algo Live Real-Time Trading Chart for Feb 27, 2018. Click on share button (bottom right beside flag) and when that screen opens you can click on make it mine to make edits etc:

Live real-time oil algorithm chart link below:

https://www.tradingview.com/chart/USOIL/YuGbmpuI-Oil-current-trading-area-Feb-26-641-AM-EPIC-Oil-Algorithm-Chart/

Oil current trading area Feb 26 641 AM EPIC Oil Algorithm Chart FX $USOIL $WTI #OIL $USO $UWT $DWT $CL_F #OOTT #Algo

Oil current trading area Feb 26 641 AM EPIC Oil Algorithm Chart FX $USOIL $WTI #OIL $USO $UWT $DWT $CL_F #OOTT #Algo

Feb 26, 2018

The first most predictable trade is the significant resistance cluster area formed by red trend lines (see previous posts and supplemental conventional charting below). As noted in the previous reports, at this point (as you will note when reviewing the charting below) trade has cleared all trendline resistance points to the upside.

The second most predictable trade (wide trading range primary resistance and support that become predictable buy and sell triggers). Upper algorithmic model wide trading range resistance (grey arrow – grey horizontal line) at approximately 65.33 in the current trading range. Lower algorithmic model wide trading range support (grey arrow – grey horizontal line) at approximately 61.71 in the current trading range – these areas are general range support and resistance areas (our algorithm uses a .15 – .20 cent buffer on either side for these trades). Trading between the resistance / support horizontal grey lines is extremely profitable risk – reward if one is disciplined to the patience required and follows the trend of trade.

The lower trading range is 58.13 to 61.71 per last week’s report.

Trading Bias: No current trade bias as oil has recently traded sideways and the US Dollar $DXY has softened/ The Dollar does have a divergent bottoming formation forming the last few weeks.

Per previous;

Trade bias short term is up, however, the US Dollar is showing divergent signals of at least a near term bottom scenario possible (as per last report).

Third most predictable trade (support and resistance of uptrend or down trend channels). On the chart an upward trending trade channel is presented and a downward option (channel support and resistance / trading range is represented as diagonal dotted orange lines and purple arrows – as made available, assist in displaying directional trade decision areas).

Fourth most predictable trade (support and resistance of 30 min quadrants). The diagonal lines make up quadrants (in this instance on a 30 min chart) and are represented as orange diagonal lines that make up geometric diamond shapes. These lines also assist in intra-day trade.

Fifth most predictable trade (support and resistance of most applicable Fibonacci) the Fib support and resistance lines are the horizontal lines in various colors with the exception of purple and yellow (see below). These horizontal lines become support and resistance for intra-day trade.

Sixth most predictable trade (support and resistance of historical support and resistance) Natural / historical support and resistance lines shown in purple or yellow – they represent historical support and resistance. The strongest of the historical support and resistance lines are shown in yellow horizontal and are typically accompanied by a yellow arrow marker.

Seventh most predictable trade signal we use are the time and price targets (red circles). When trade is in a significant uptrend or downtrend the targets become very precise and move up the indicator priority list quick.

Current and more recent trade has moderate predictability. Tues, Wed and Fri targets are most predictable in extended multi week uptrends or downtrends.

The Eighth most predictable trade is intra-day. You will notice on some of the charting geometric shapes in green on some of my charting (at times). They are charted live in the trading room and at times the lead trader will highlight these areas intra with white outlines (typically geometric shapes such as diamonds or triangles).

Wide Trading Range – Buy and Sell Triggers for Swing Trading:

Trade the ranges noted above between the thick grey lines (grey arrows) for the most predictable swing trades in the lower region are between 58.13 and 61.71 and 65.33 for trade above 61.71. This is a highly profitable risk-reward way to trade oil if you can be patient to trigger at only the break of the wide range charting areas and are disciplined to cut a losing trade that does not prove in your anticipated trend.

Oil up channel scenario Feb 26 640 AM EPIC Oil Algorithm Chart FX $USOIL $WTI #OIL $USO $UWT $DWT $CL_F #OOTT #Algo

Oil up channel scenario Feb 26 640 AM EPIC Oil Algorithm Chart FX $USOIL $WTI #OIL $USO $UWT $DWT $CL_F #OOTT #Algo

Oil down channel scenario Feb 26 639 AM EPIC Oil Algorithm Chart FX $USOIL $WTI #OIL $USO $UWT $DWT $CL_F #OOTT #Algo

Oil down channel scenario Feb 26 639 AM EPIC Oil Algorithm Chart FX $USOIL $WTI #OIL $USO $UWT $DWT $CL_F #OOTT #Algo

Weekly Oil Swing Trading Chart Considerations with Price Targets:

Real-time swing trading oil chart link with Fibonacci support and resistance, moving averages, etc:

Oil Chart Resistance Check Feb 27 200 ma, 50% Fibonacci, mid quad on monthly. $USOIL $WTI $CL_F #OIL #OOTT $USO $UWT $DWT

https://www.tradingview.com/chart/USOIL/aVWhhATs-Oil-Chart-Resistance-Check-50-Fibonacci-mid-quad-on-monthly/

Oil Chart Resistance Check Feb 127 50% Fibonacci, mid quad on monthly. $USOIL $WTI $CL_F #OIL #OOTT $USO $UWT $DWT

Per recent;

Real-time swing trading oil chart link with Fibonacci support and resistance, moving averages, etc:

https://www.tradingview.com/chart/USOIL/r9xEjQjr-Oil-Resistance-Check-Feb-19-50-Fibonacci-mid-quad-on-monthly/

Oil Resistance Check Feb 19. 50% Fibonacci, mid quad on monthly chart.. $USOIL $WTI $CL_F #OIL #OOTT $USO $UWT $DWT

Oil Resistance Check Feb 19. 50% Fibonacci, mid quad on monthly chart.. $USOIL $WTI $CL_F #OIL #OOTT $USO $UWT $DWT

https://www.tradingview.com/chart/USOIL/r9xEjQjr-Oil-Resistance-Check-Feb-19-50-Fibonacci-mid-quad-on-monthly/

Per recent;

Oil resistance check. 50% Fibonacci, mid quad on monthly chart.. $USOIL $WTI $CL_F #OIL #OOTT $USO $UWT $DWT

Oil resistance check. 50% Fibonacci, mid quad on monthly chart.. $USOIL $WTI $CL_F #OIL #OOTT $USO $UWT $DWT

One of the models in this week @EPICtheAlgo report has oil $USOIL at 74.83 April 9, 2018 (in the most bullish scenario on that model). Wow. $WTI $USO #OOTT #algorithm #chart #model

Oil model chart has possible bullish price target of 74.83 April 9, 2018. Also watch 20 MA breach 200 MA and 65.30 Fib resistance. See chart from previous report below.

Oil model chart has possible bullish price target of 74.83 April 9, 2018. Also watch 20 MA breach 200 MA and 65.30 Fib resistance.

Oil Weekly Algorithmic Quad Charting well over 200 MA and price on way to mid quad resistance (red circle) price target. $USOIL $WTI #algorithm #model

Real-time live oil swing trading chart link: https://www.tradingview.com/chart/USOIL/WeDHKLLM-Oil-Weekly-Algorithmic-Quad-Charting-well-over-200-MA-and-price/

Oil Weekly Algorithmic Quad Charting well over 200 MA and price on way to mid quad resistance (red circle) price target. $USOIL $WTI #algorithm #model

Conventional Charting Observations:

Per recent:

Oil cleared 200 MA on weekly and now the 200 MA on monthly chart is a test. $USOIL $WTI $CL_F $USO #OOTT #OIL

https://www.tradingview.com/chart/USOIL/d7BkciaS-Oil-cleared-200-MA-on-weekly-and-now-the-200-MA-on-monthly-chart/

Oil cleared 200 MA on weekly and now the 200 MA on monthly chart is a test. $USOIL $WTI $CL_F $USO #OOTT #OIL

Oil Weekly Chart – 200 MA test continues w Stoch RSI turned down MACD SQZMOM leveling. $USOIL $WTI $CL_F #OOTT #OIL $USO $UWT $DWT Dec 17, 2017

https://www.tradingview.com/chart/USOIL/WYuSzZdP-Oil-Weekly-Chart-200-MA-test-continues-w-Stoch-RSI-turned-down/

Oil Weekly Chart – 200 MA test continues w Stoch RSI turned down MACD SQZMOM leveling. $USOIL $WTI $CL_F #OOTT #OIL $USO $UWT $DWT

Diagonal Trend Lines:

Diagonal trend-lines are critical inflection points (currently represented in red below on our conventional charting).

Please review many of my recent posts so you can learn about how important these diagonal trend-lines are. If one is breached you can look to pull-back to next diagonal trend line about 90% of the time. Also pay attention to how thick the lines are – the thicker the line the more important because they represent extensions from previous time / price cycles.

Remember you can come in to the chat room to message the trader and REMEMBER I have posted a live chart link in this post so if you can’t see the lines well on this chart above you can go to the live chart link and watch for member live algo chart links through-out the day in your email inbox!

The diagonal trend-lines are marked on chart below:

Per previous:

Oil has now cleared every trendline resistance provided on conventional charting I’ve posted last year. $USOIL $WTI $CL_F #OOTT #OIL $USO $UWT $DWT 233 PM Jan 1

Oil has now cleared every trendline resistance provided on conventional charting I’ve posted last year. $USOIL $WTI $CL_F #OOTT #OIL $USO $UWT $DWT 233 PM Jan 1

Oil chart. Conventional indicator considerations (notes on chart). $USOIL $WTI $CL_F #OOTT #OIL $USO $UWT $DWT 608 PM Dec 17, 2017

https://www.tradingview.com/chart/USOIL/MloezxWQ-Oil-chart-Conventional-indicator-considerations-notes-on-chart/

Oil chart. Conventional indicator considerations (notes on chart). $USOIL $WTI $CL_F #OOTT #OIL $USO $UWT $DWT 608 PM Dec 17, 2017

Previous posts for perspective;

Simple lines show expose clusters of resistance. Crude algo intra work sheet 201 AM Apr 10 FX $USOIL $WTIC #OIL $CL_F CL $USO $UCO $SCO $UWT $DWT #OOTT

Notice how when the daily chart is opened, the simple lines extend to current day trade.

Daily chart view. Simple lines show expose clusters of resistance. Crude algo intra work sheet 213 AM Apr 10 FX $USOIL $WTIC #OIL $CL_F CL $USO $UCO $SCO $UWT $DWT #OOTT

Daily chart view. Simple lines show expose clusters of resistance. Crude algo intra work sheet 213 AM Apr 10 FX $USOIL $WTIC #OIL $CL_F CL $USO $UCO $SCO $UWT $DWT #OOTT

Fibonacci Levels:

Watch the lines for support and resistance. Careful using them as traditional retracement levels with crude because the algo lines etc are more dominant / predictable. But the Fib lines are excellent indicators for intra-day trade support and resistance.

The Fibonacci lines are marked on main chart above.

Horizontal Trend-Lines (purple):

Horizontal trend-lines are not as important as the other indicators reviewed above, however, they do serve as important resistance and support intra-day for tight trading and they are important if thick (in other words they come from previous time / price cycles). WE STARTED TO REPRESENT THE REALLY IMPORTANT LINES IN YELLOW FYI FOR EASE. Refer to chart for current applicable horizontal trend-lines.

Horizontal trend-lines are marked on charts above.

Oil Time / Price Cycles:

Watch your email and / or my Twitter feed for time price cycles they may start to terminate.

Time / price cycles are the single most important indicator and my record calling them is near 100% – since inception seven months ago. The reason they are so important is that a trader does not want to be holding a crude oil instrument at termination of a time cycle if not absolutely sure if price will go up or down. A trade may choose to enter a large position in advance of a time price cycle termination IF THERE IS A HIGH PROBABILITY OF A DIRECTION IN PRICE and if the market is trading at a really important pivot area. In other words, if the market is trading at the bottom of the upward trending channel at a support (yellow lines) and we knew there was a significant probability of a time cycle about to terminate a trader may enter with a long position. The price really spikes or drops significantly when these important time cycles terminate.

The problem with time / price cycle terminations is they change from minute to minute (depending on where price is on the chart) so you have to be in the trade room to get the alert. Our lead traders will do everything they can in future to send these on SMS but we have to be careful because it can be difficult with so much going on in the room. The reason they (time cycles) change is because they are actually represented by or are geometric shapes in the chart – I know it sounds odd but I have (as I mentioned) hit these calls just shy of 100%. The oil political people know the same algorithmic modeling principles and they ALWAYS TIME THEIR BIG ANNOUNCEMENTS AROUND THE TIME PRICE CYCLE TERMINATIONS.

So if you can picture a triangle on the chart – and price is trading in the triangle – and price is going to come to the edge of the triangle and there is a significant support or resistance or an algo line terminating there too or a target (those type of indications)… then we know there is a high probability of a time and price change. In other words, it is where there are clusters of algorithm points that cross and when price is going to cross over that cluster is where they are. And these are represented on all the different time frames – the larger the time frame – the larger the time price cycle termination – the larger the spike or downdraft. This is where we establish our intra-day quadrants from for sniping trades (which we will put in to the room soon because it looks like the geo political rhetoric is over for a while making them more predictable). Difficult to explain in short. So we will do our best to SMS alert these in future.

Also, the real large or important time / price cycle terminations we know far in advance and they can be put in these newsletters.

If you review my Epic the Oil Algo Twitter feed, my blog posts and my story on our website you will get a feel for how accurate these calls are.

Alpha Algo Trading Trend-Lines (Primary – Red dotted lines. Secondary – White dotted lines):

To determine which algo line is most alpha (or probable) intra day, it is the nearest line to price action. This can also help you determine the trend of trade. If the algo line is trending up the price will follow it up until price is tested at an algorithm indicator (the main tests are diagonal trendlines, horizontal trendlines, time / price cycles etc – as I have shared with you). This is why it is important to watch all the lines because they are all support and resistance. To keep it simple trade the range (yellow lines) as I’ve mentioned but keep an eye on these indicators.

Current Alpha Algo Targets (Red circles):

Your closest target that crude is trending toward is always the most probable.Then, your second most probable is the one that is up or down trend depending on whether general price is in an upward or downtrend for the most recent week or so and what your other indicators look like (such as the MA’s I explained above).

The other way to determine which targets are in play is actually quite simple, you will notice that crude trades between the channel lines up and down and up and down and there are various support and resistance along the way. If it hits a target at the top of the channel you can bet most times (unless the next day like today) that the next target hit will be at the bottom of the channel.

Wait for the price to trend toward a target and take your position and watch as price gets closer and closer to the target. Remember, that the machines trade from decision to decision – or in other words from support to next resistance or resistance to next support or when the times come each week on Tuesday Wednesday and Friday they will trend toward the target that market price action determines they go to.

Our lead trader will explain more in the room and do not hesitate to ask our lead trader in the room by private message or on twitter to explain intra day decisions.

Recent Target Hits:

Per recent;

Oil Tues 430 PM price target hit, as provided on weekend report. EPIC Oil Algorithm Chart FX $USOIL $WTI #OIL $USO $UWT $DWT $CL_F #OOTT #Algo

Oil Tues 430 PM price target hit, as provided on weekend report. EPIC Oil Algorithm Chart FX $USOIL $WTI #OIL $USO $UWT $DWT $CL_F #OOTT #Algo

Oil Wed 1030 AM EIA report price target perfect hit, as provided on weekend report. EPIC Oil Algorithm Chart FX $USOIL $WTI #OIL $USO $UWT $DWT $CL_F #OOTT #Algo

Oil Wed 1030 AM EIA report price target perfect hit, as provided on weekend report. EPIC Oil Algorithm Chart FX $USOIL $WTI #OIL $USO $UWT $DWT $CL_F #OOTT #Algo

Fri Feb 16 upper price target perfect hit, as provided on prior weekend report. EPIC Oil Algorithm Chart FX $USOIL $WTI #OIL $USO $UWT $DWT $CL_F #OOTT #Algo

Fri Feb 16 upper price target perfect hit, as provided on prior weekend report. EPIC Oil Algorithm Chart FX $USOIL $WTI #OIL $USO $UWT $DWT $CL_F #OOTT #Algo

Recent Trade Alerts:

Oil trade alerts recommence this week.

Oil Intra-Day Algo Trading Quadrants (white dotted lines):

Trading quadrants are simply support and resistance lines that can assist your intra-day trading – they are not alpha or primary support and resistance by any measure. Price action does however typically move more assertively when leaving a trading quadrant.

Indicator Methods:

As explained above, my algorithm is a consideration of up to fifty traditional indicators at any one time – each one given its own weight in accordance to its accuracy (win rate). This is how we establish the probability of specific targets hitting (we call them alpha algo targets).

Alpha Algo Targets, Algo Trend-lines, Algo Timing, Quadrants for Intra Snipes

Algo targets are the red circles – they correspond with important times each week in oil reporting land. Tuesday 4:30 PM, Wednesday 10:30 AM and Friday at 1:00 PM. The red dotted diagonal lines are the algo trend-lines. And the vertical dotted (red or green) are marking the important times each week. You will find that the price of crude will hit one of the alpha algo targets about 90% of the time. In the absence of market direction the machines take price to the next algo line and/or target. Understanding how the price of crude reacts to the algos and how they move price from target to target is critical for intra-day and swing trading crude oil and associated instruments.

You will notice that price action of crude will use these algo trend-lines and act as support and resistance, and that price also often violently moves when an alpha algo line is breached either upward or downward.

We cover this in much more detail in the member updates, trading room. A review of my Twitter feed and previous blog posts will help you understand the relation of these indicators. We will start posting video blogs (for my subscribers) on YouTube (in addition to my daily blog posts) for swing traders that work during regular trading hours.

Also… we will cover how to establish algo trend-lines and price targets future forward (as you have seen me do on my Twitter feed for some time now).

Conclusion:

See you in the live trade room! And again, if you struggle to know how to use these indicators as a trader’s edge, it is recommended (if you have earnestly reviewed all of our documentation first) that you obtain private coaching prior to trading a real account with real money – we recommend you use a paper trading account at first.

You can also send specific questions to our email inbox at [email protected] – if you do this be sure to ask a specific question so it can be answered specifically. When the 24 hour oil trading room opens you will have ample opportunity in that 24 hour room to ask questions also.

Watch my EPIC the Oil Algo Twitter feed for intra day notices and your email in box for member only material intra day also.

EPIC the Oil Algo

PS If you are not yet reviewing the daily post market trading results blog posts, please do so, they are on the blog daily and often there is information that also may assist your trading. Trade room transcripts (for example) may review topics pertinent to your trading.

Article topics: EPIC, Oil, Trading Room, Crude, $USOIL, $WTI, $USO, $UCO, $CL_F, $UWT, $DWT, $ERX, $ERY, $GUSH, $DRIP, Chart, Algorithm