Crude Oil FX: $USOIL $WTI ($UWTI, $DWTI, $USO, $UCO, $CL_F) Chart and Algorithm Observations
November 25, 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 (up to fifty at any given time each weighted on individual merit) such as simple math calculations relating to price and volume, Fibonacci, simple pivots, moving averages, Gann, Schiff and other mathematical factors. I do not yet have AI or Geo integration – only math. I am not a high frequency or bot type algorithm – I am to be used (represented on a chart) as a probability indicator to give our trader’s an edge when triggering entries and exits on trades with instruments that rely on the price of crude oil (specifically FX $USOIL $WTI).
Below you will find my simplified view of levels that can be used on a traditional chart to advance a traders’ edge (both intra-day and as a swing trader). This work, and your subsequent trading, should be considered as one decision at a time, “if this happens then this or this are my targets”… price – trigger – trade and so on.
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 my algorithm development process and about my oil algorithm story.
My charting and alpha algo targets / algo trendlines are free to the public until Dec 1, 2016. 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 be given step by step training in all the information I use and all the advanced charting I produce on an intra-day basis.
FX: $USOIL $WTI Observations
At time of writing FX $USOIL $WTI is trading at 47.40 (1227 AM ET Nov 25, 2016). Some thoughts that may help advance you trading edge;
Crude has been trading in eradic ways the last few weeks. Normally we can lock in the alpha algo targets and algo trendlines with little difficulty – but the last two weeks have not been easy and continue to be difficult. The geo political sphere is obviously affecting the natural trading range. SO IT IS IMPORTANT TO CONSIDER THE GEO POLITICAL SITUATION when triggering trades based on our algorithm targets – CAUTION is warranted.
In intra-trade crude (referring to chart above) has fallen below two intra diagonal trendlines (blue) and bounced off the third. The three alpha algo targets are represented in the chart in red circles for tomorrow. Other targets for next week have now been published to my Twitter feed https://twitter.com/EPICtheAlgo.
So the primary observation in this post is more geo political – use caution. Nonetheless, below is some detail.
Indicators
As I explained above, my algorithm is a mash-up of up to fifty traditional indicators at any one time – each one given its own weight in accordance to its accuracy (win rate). This “mash-up” is how we establish the probability of specific targets hitting (we call them alpha algo targets).
Starting early December we will be introducing these indicators in to our trading room to assist our traders with using these indicators to advance their edge (beyond my standard charting you see in this post). We will also work with intra-day quadrants for the intra-day snipes.
However, for now, here are some indicators that stand out:
1. 200 day on 1 hour relationship. Crude algo intra work sheet 104 AM ET Nov 25, 16 FX $USOIL $WTI FXCM #Oil $USO $UWTI $DWTI $CL_F #OOTT #Algo
This is obviously a great BUY TRIGGER.
2. Crude is most recently beginning to respond to algo line and algo targets. Crude algo intra work sheet 110 AM ET Nov 25, 16 FX $USOIL $WTI FXCM #Oil $USO $UWTI $DWTI $CL_F #OOTT #Algo
So being that crude has more recently (because for a time there when oil meetings were in the air so to speak it didn’t) this is good. It is also responding to simple lines (simple diagonal trend-lines and horizontal support lines). This makes trading much more predictable. Visit us in our trading room for more information on how to trade these charts or subscribe to my daily posts if you cannot be in front of a monitor all day.
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. 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 cover this in much more detail in the trading room and we will start posting video blogs (for my subscribers) on You Tube (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).
Here are the most recent alpha algo targets published to Twitter:
https://twitter.com/EPICtheAlgo/status/802035832878075905
https://twitter.com/EPICtheAlgo/status/802037096529596417
https://twitter.com/EPICtheAlgo/status/802037700752601088
https://twitter.com/EPICtheAlgo/status/802038186406875137
https://twitter.com/EPICtheAlgo/status/802040150142267392
https://twitter.com/EPICtheAlgo/status/802046813196820480
https://twitter.com/EPICtheAlgo/status/802046889650634757
Conclusion
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.
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
https://twitter.com/EPICtheAlgo/status/798812739078475776
Article Topics: Trading, Stocks, Wall Street, Chat Room, Algorithm, Charts, Indicators, Crude Oil FX: $USOIL $WTI ($UWTI, $DWTI, $USO, $UCO, $CL_F