Crude Oil FX: $USOIL $WTI ($UWTI, $DWTI, $USO, $UCO, $CL_F) Chart and Algorithm Observations

November 15, 2016 EPIC the Oil Algo Oil Report.

Welcome to my new FX: $USOIL $WTI oil trade report. These reports will become more and more detailed as the days and weeks go forward.

How My Algorithm Works and Availability:

I am an algorithm in development. My math is based on traditional indicators (many – up to fifty at any given time) and simple math calculations relating to price, volume, Fibonacci, simple pivots and other factors. I do not yet have AI or Geo integration – only math. Below you will find my simplified view of levels that can be used on a traditional chart to advance a trader’s edge (both intra-day and as a swing trader). My algorithmic charting is going to developer coding phase early 2017 for our trader’s dashboard program. I am not an automated bot or high frequency type algorithm. Please review about my algorithm process and about my oil algorithm story. My charting and alpha algo targets / algo trenlines are free to the public until Dec 1, 2016 and after Dec 1, 2016 will only be made available to subscribers here. Below you will find the “basics” and commencing Dec 1, 2016 my subscribers will have access to all the information I use and all the advanced charting I produce on an intra-day basis.

At time of writing FX $USOIL $WTI is trading at 45.33 (4:2 AM ET Nov 16, 2016). Some thoughts to advance you trading edge…

Overview

I have not updated and posted new alpha algo targets (red circles on charts) and alpha algo trendlines (red dotted lines on charts) because crude oil has confirmed my previous posts warning of a time / price cylce termination and change in price direction. See my Twitter feed for posts on this subject.

https://twitter.com/EPICtheAlgo/status/798811954412277767

https://twitter.com/EPICtheAlgo/status/798812204740976640

https://twitter.com/EPICtheAlgo/status/798812499566940160

My last two blog posts explained what to look for in this possible new crude oil uptrend in price – please review them.

In recent trading the uptrend has been confirmed by price pinching out from between the two alpha algo lines,  breaching the 200 day on the 1 hour and significant diagonal trend line resistance (blue lines) and horizontal resistance (purple lines).Thicker lines are more important (typically proven through previous time / price cycles).

AT TIME OF WRITING HOWEVER, PRICE HAS COME BACK UNDER THE IMPORTANT TRENDLINE SUPPORT – WATCH THIS CLOSELY (see chart above).

https://twitter.com/EPICtheAlgo/status/798810559126700032

So there are TWO STEPS now for ABSOLUTE CONFIRMATION for my algorithm to produce new alpha targets (which is my best contribution to a trader’s edge)… they are 1) regaining that trendline support and 2) the test of time and price at Tuesday 4:30 PM (done), Wednesday 10:30 AM and Friday 1:00 PM EST.

Understanding how price reacts to those diagonal trendlines is critical. Please refer to my last two oil trading blog post explaining how these diagonal trendlines affect the trading price of crude oil. Price action at diagonal trend-line resistance determines another leg up or establishes resistance.

Pivots and Fibonacci

The next set of indicators my algorithm use are pivots and Fibonacci, I will introduce these to these posts over the next few days.

Alpha Algo Targets, Algo Trend-lines, Algo Timing

Algo targets are the red circles – they correspond (at these pictured) 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. Understanding how the price of crude reacts to the algos and why they move from target to target is critical for intra-day and swing trading oil. We will cover this in much more detail in the trading room and we will endeavor to start posting video blogs on You Tube etc soon 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

As it applies to my algorithm, crude is now in an uptrend and will be further confirmed this morning at 10:30, tomorrow at 4:30 PM and last Friday at 13:00.

You can expect new alpha algo targets for those times and alpha algo trendlines at latest Friday from my algorithm.

That is a good place to leave it for now – we will review details of the above in the trading room and when time allows we will segment for our swing traders (and publish) videos of the work we do in the trading room.

We will also cover more indicators (including intra-algo trading quadrants, traditional pivots, Fib and more) soon!

See you in the live trade room and if not stay tuned for our videos recapping what happens in the room!

EPIC the Oil Algo

Article Topics: Trading, Stocks, Wall Street, Chat Room, Algorithm, Charts, Indicators, Crude Oil FX: $USOIL $WTI ($UWTI, $DWTI, $USO, $UCO, $CL_F