Crude Oil Day Trading Session From Oil Trading Room – Trading Set-up Short Waterfall Strategy.
If you want to learn how to day trade crude oil, or if you want to win more often and already are an oil day trader this post with live video from our oil trading room will provide you with insight to how I day trade crude oil.
The planning and preparation I perform prior to every trade (such as reviewing support and resistance on all time frames and charting), the signals I watch for and what the water-fall short trade set-up looks like and specifically how to day trade the price action.
This is a very detailed video and I highly recommend oil traders study it for maximum consistency to your trading gains.
Voice broadcast starts at 1:23 on video.
At start of this video there are announcements about what we are doing (our staff work in progress) and general view of markets and how the trade of equities (swing trades) is affected by nearby resistance on oil charting.
Topics of announcements include the coding updates for the machine trading, status of algorithm reports, the huge month in our oil trading last month (up 63% in one month), trade alerts, digital platform for our clients to watch machine trade real-time, swing trade timing for equity and various algorithm model swing trade positioning in this time cycle, why the machine trading can beat my overall return performance by 10 times, coding of other algorithm models, the publishing of the rule-set modules for oil trading (mechanical human executed & machine traded, intra-day swings, longer term swings and daytrading).
The Pull Back In Oil Trade.
At 9:20 I discuss the trade action in oil as we trade near key resistance in oil. We should see 53 and possibly 52’s and even more down.
Trade Signals to Watch For Positioning Swing Trades, Intra-Day Swings and Day Trading..
When trade hits support for a proper bounce we know when machines are in trade because the trade action becomes really clean within the models. This predictable trade action provides a signal for when to start longer swing trade entries, helps us with intra day swing trades within the EPIC trading model and provides for precise day trading on the one minute model.
Trend Line Support on Watch.
At 10:30 on video the basing trend-line on the 4 hour chart is reviewed as support. Conclusion of this pull back in oil should come soon. I am expecting at latest Monday or Tuesday of next week.
Watch for violent trade up / down (stops taken out), most likely down first so I am positioning my bias for that scenario first. Likely a sharp down and then sharp up and then the mid point between the two points should be the decision area.
Tomorrow is EIA so this could be your timing or likely before end of week is likely for the spike up and down and then the pivot decision goes in to Sunday night futures.
One Minute Crude Oil Day Trading Model.
At 12:48 I discuss trade on the one minute day trading model. The problem in trade as we get close to key resistance decision is trade becomes sloppy. So I show you how to trade the model if you need to trade and you don’t want to wait for the decision on oil trade trend direction.
The indicators are late so you have to act on price prior.
How to Trade a Key Intra-Day Break to Down Side (Waterfall) or Upside. The Oil Day Trade Starts Live on Video Here.
At 14:00 the intra-day possible break to downside in trade is discussed.
Planning and Preparation for Your Day Trade – Know Your Key Support Area on Charting Prior to Entering a Trade.
- When trade on the one minute charting looks like a break to downside (or upside) is possible I first go to the EPIC model for key support or resistance. 53.52 is at mid quad on model, so that is support to watch.
- At 16:24 on video 53.00 is a support on the daily chart (a Fibonacci support on the oil daily chart and the 20 MA support).
- 51.13 is next support and 57.31 for Feb 20 is the upside scenario.
- My bias is pull back and then go again.
- 53.00 – 55.50 is a likely pivot area until a conclusion occurs in this trade area.
- At 18:00 on the video the weekly oil chart is reviewed.
- The price extension support and resistance, the 20 MA 57.00 and 200 MA 52.30 (as your broad trading range) and trend lines on the weekly charting is reviewed. 53.26 price extension is serious support and price under that is an obvious short.
Know Where the Price Targets Are for the Machines.
- Discussed is the end of week and EIA price targets on the EPIC algorithm model. The algorithmic channel and quad support and resistance areas.
Preparing My Short Order Day Trade in Oil Live on Trading Room Video.
- At 20:00 on video I get my trading execution ready.
The Trade Pattern Set-up (Signal).
At 20:30 on video – When you see this pattern (trade signal) on the one minute charting model be very careful to cut your trade fast if the machines kick in the other direction (long).
Trade When Signals Are Most Predictable.
I prefer trading oil when the trend is clear and the machines are in it. Reports say over 80% of oil traders lose. This is largely why. Trade gets sloppy and then frustrates the trader.
Money in crude oil trading is made in the trend. Near resistance trading can mind mess you.
This is why I close my DWT short swing trade when we got near key resistance.
Winning is Important.
Not only is losing bad for your account but it is even more important for your mind. Your subconscious needs to know it wins. The subconscious is powerful.
Day Trading Model.
Location of trading boxes around three pivot areas of the one minute crude oil day trading chart model.
24:00 on video pivot resistance is discussed.
I am short bias to 53, 52.75 then 51.20 is possible.
At 24:45 on the one minute you have stochastic RSI increasing and price that is basing, typically that means down next or even a possible waterfall short trade set-up.
The Risk-Reward (the Math of the Trade) On a Down-Side Break Set-up.
At 25:20 I start to discuss the math of the trade. You can take the short side trade and if price turns on you then you take a maximum cut of 16 ticks on the trade, but if price gets you on the right side and continues to confirm short then your win will be much bigger return.
Short Trade Executed – Play by Play.
At 25:42 on the video at 53.77 my short trade execution is done live.
Location on crude oil chart of short trade entry for day trade on chart below.
Short crude oil trade alert screen shot of member Twitter alert feed is shown below at 53.77.
At 26.42 on video the buys came in at the Fibonacci support on the one minute model shown (red arrow).
At 26.50 buy side trades are testing the 20 MA resistance on 1 minute chart.
At 28:34 on video trade is over the 20 MA trading 53.83 hit resistance on the pivot on the 1 min just under 50 MA.
Indicators are turning up now. Started to look like a reversal trade but I stayed with the plan because trend on the day was down and I didn’t want to be chopped up.
Trade hit 53.87 before it turned back down (so I was 10 ticks off side at that point). Technically trade got a penny or two over trading box resistance but I held because the bulls needed to have big buys and momentum to kick in to fight the daily trend which was pressure in trade.
At 32.35 the 4 hour chart is reviewed and my target for the risk reward to down side. The reward potential was much better in my thinking.
The EPIC model confirms also.
At 33:40 the weekly chart shows a good risk reward also.
Protecting you capital is key and trading for risk reward on trend for the time frame.
30 minute candle turn timing is discussed.
The pivot test continues.
At 39:13 on the video the technical area of key support for the day trade is reviewed. 53.58 is the next Fib down so you want trade to break under that and hold under 53.58 and if it doesn’t you’re best closing the trade for a scalp. This is purely a math play. You will win 50% and win you do win you’ll either get a decent scalp or a larger 5 x risk reward win.
This is purely a math play. You will win 50% and win you do win you’ll either get a decent scalp or a larger 5 x risk reward win.
At 42:47 volatility VIX is reviewed and how I want volatility to start rising intra-day.
At 45:28 the importance of trading in a zen state vs. frustration is discussed.
At 46:00 trading on bias based on technical set-ups and protecting your capital (accepting it quickly when you are wrong) is key to trading success.
At 48.00 the inverse head and shoulders that technicians on Twitter were talking about is discussed relative to the risk reward on the 30 minute chart price target.
The price target for the short oil trade is shared in the oil trading chat room private server.
How I Knew Where to Close the Short Oil Trade for a Win.
At 53:15 on the video is top of the hour with price falling and trade was under the key support resistance 54.59 and we needed it to hold under for staying in the trade short.
The price action here on the video is important to watch close here if you want to learn how to do this.
At 57:00 on video I explain that you could short again here, I didn’t, but price did come off and it would have been a decent short trade.
Trade did not stay under resistance at pivot so I closed the oil short trade for a win.
If You Want a Win Rate 90%+ DayTrading Crude Oil – I Highly Recommend Listening to this Part of The Video – IT IS KEY.
I continue to comment on how the trade continues to set up discussing the technical areas to watch.
If you want to learn about specifically where your support and resistance areas are on the one middle model BE SURE TO WATCH THE VIDEO HERE (from 57:00 minutes on video forward).
If you watch the price action and my commentary you will see how precise the machines trade the one minute model – THIS WILL HELP YOU TIME YOUR ENTRIES AND WHEN TO CLOSE. VERY IMPORTANT.
Below is a screen shot of the oil trade alert feed – closing the trade for a win.
Below is the Trade Executed Live in Oil Trading Room.
Peace and best,
Email me with any questions you may have [email protected]
Recent Learning Posts and Videos (most are premium member locked posts).
Feb 4 – January 2019 Oil Trading Alert P/L.
Jan 31 – Day Trade Timing Strategies for Crude Oil Trade Around Time Cycles and EIA.
Jan 29 – Trading the Main Support and Resistance on EPIC Algorithm Model. How to Post.
Jan 27 – Premium Member Private Post (Weekly Reporting & Guidance).
Jan 22 – Compounding Gains Day Trading Crude Oil.
Jan 20 – Weekly Crude Oil Trading Strategy Guidance Private Post for Premium Members.
Jan 19 – A detailed inside look at our day traders’ strategies in crude oil day trading room.
If you have any questions send me a note please!
Best and peace!
PS Remember to protect capital at all cost, cut losers fast and know that when you win you really win. Use the 1 min charting model for entry timing, cut losers fast and re-enter if you have to. Do that until you learn how to be a regular win-side trader.
If you would like to learn more, click here and visit our Crude Oil Trading Academy page for complimentary oil trading knowledge – posts from our top crude oil traders that includes learning systems, blog posts and videos.
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Article Topics: Day Trading, Crude, Oil, How To, Trade, Oil Trading Room, Strategy, USOIL, WTI, CL_F, USO