Thursday Feb 9, 2017 EPIC the Oil Algo Oil Report (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.
Mid Week Update:
This week crude oil has traded up to the resistance line (yellow) at which point it failed and traded lower. As it traded lower price action missed the primary algo targets on Tuesday and Wednesday (red dotted lines and red circles) and ended up in much lower secondary targets (along Fibonacci based algo lines white dotted). The aggressive price action lower breached an important diagonal trendline support (blue) which was very unusual considering the strength of that diagonal trendline and an important horizontal support (yellow).
Price finally settled at the bottom of its multi week sideways channel range low support and bounced from there now trading between two secondary algo lines (white dotted) and most likely will target the algo target where these two lines converge on Friday at 13:00 EST. If price continues upward you could refer to targets upward as already on the charts. If price trades lower than its multi-week sideways channel (which would break the current chart) I will immediately publish an update and live chart for members.
For now to keep it simple, trade the muti-week sideways range watching the support and resistance areas on the chart (until the range is broken). Considering the algorithmic model results from trade action the last two days, we are most confident this range will break soon to the upside or downside. First because the upper range was recently tested and failed in a way that price action then missed the primary algo targets (and hit secondary lower targets) but also because price action aggressively moved from the upped resistance to most low support level very quickly. In other words, there was not enough confidence in trade to test the upper resistance for a continued time. These factors are signalling divergence in trade. Be prepared for a break soon.
It is much more predictable when trade is in an upward channel or a downward channel for algo targets on Tuesday, Wednesday and Friday’s – so when trade is in a sideways range like it has been for weeks traders have to be very cautious with bias toward targets and trade the sideways range support and resistance and make intra-day decisions based on various support and resistance on chart.
By the way, whenever price action fails to hit primary targets and breaches important trendline supports as this week, look to the secondary algo lines (white dotted vs. red dotted). The red dotted are alpha and the white secondary. If alpha lines and targets are breached machine trade defers to the secondary (white dotted). Even if the chart is not marked with a red circle target at the target times on Tuesday, Wednesday and Friday you can still follow the white dotted line to the target time for Tues, Wed and Friday and know where the target is for that day (where the white dotted line and time cross on the chart).
After the Friday target area is settled in trade I will update our complete model with wide range and intra range modeling so everyone is prepared for next week in detail. Also, this weekend we are hosting a webinar and that would be a good time to review charting for next week and discuss any ideas or questions with our traders.
Current Live EPIC the Oil Algo Charting: https://www.tradingview.com/chart/USOIL/ZTgoMnv5-EPIC-the-OIL-Algo-Member-Charting-USOIL-WTI/
Charts showing recent trade action with explanations under each $USOIL chart.
Two algo line trend choices after Friday 1300. Crude oil algo chart intra 620 AM Feb 9 FX $USOIL $WTIC #OIL $CL_F CL $USO $UCO $SCO $UWT $DWT #OOTT
Most probable Fri target is where two secondary algo lines converge at time and price. Crude oil algo chart intra 611 AM Feb 9 FX $USOIL $WTIC #OIL $CL_F CL $USO $UCO $SCO $UWT $DWT #OOTT
Failed diag TL sup (blue) horiz sup (yellow) hit third set of targets and repaired chart. Crude oil algo chart intra 609 AM Feb 9 FX $USOIL $WTIC #OIL $CL_F CL $USO $UCO $SCO $UWT $DWT #OOTT
Failed resistance which warned could happen but failed to hit secondary algo targets this week. Crude oil algo chart intra 607 AM Feb 9 FX $USOIL $WTIC #OIL $CL_F CL $USO $UCO $SCO $UWT $DWT #OOTT
Last week predictable trade in to targets toward resistance. Crude oil algo chart intra 606 AM Feb 9 FX $USOIL $WTIC #OIL $CL_F CL $USO $UCO $SCO $UWT $DWT #OOTT
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. And finally, we will be publishing a “how to use guide” soon, but it will be simply be a recap (consolidation) of instructions in this post, from my Twitter feed, and previously published information on our blog and website. 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, Algo, Crude Oil FX: $USOIL $WTI, $USO, $UCO, $CL_F, $UWT, $DWT, $ERX, $ERY, $GUSH, $DRIP, Chart, Algorithm, Indicators, Fibonacci