Short Instructional Oil Trading Strategy Article and Video.

Exactly How We Executed Day Trade for Price Reversal Intra day Oil Trade.

This strategy works for us over and over again and is alerted to our premium oil trade alert feed and in the oil trading room.

The video and article highlight the algorithmic model charting but the disciplines of trade can also be applied to conventional or classical charting when day trading crude oil.

VIDEO: Day Trading Crude Oil Intra Day Price Reversals – Oil Trading Room, “How To” Instructional.

We start below with a screen capture of the oil trading room, with a trade alert at 10:59 AM EST on watch for the support coming at the 1 hour oil charting support area of 35.37.

Intra-day oil price actually hit exactly that price and then oil price reversed for the trade to trigger. You can see clearly the signal price target perfect hit if you look 3 images down you can see it clearly on the 15 second day trading chart (1 minute trading model brought down to 15 second time frame).

oil trading room, trade, strategies

Oil Trading Room – trade strategies discussed, 35.37 seems to be the decision support area on the 1 hour crude oil symmetry model.

The one hour algorithmic oil chart below is the chart that was referenced in the oil trading alert to be on watch for the price reversal expected at 35.37.

We are intent on building the best oil trading room and alert service in the world, this proprietary modeling is one example of the edge our oil traders have.

You can read more about the 8700 rules our oil trading software uses to execute trades here. 

oil trading room, trade n watch

35.37 seems to be the decision support area on the 1 hour crude oil symmetry model

The chart below is the 1 minute oil daytrading model our traders use.

It is a machine grid and in the image below it is brought down to a 15 second time frame to show our traders how the software executes to the signal of progressive volume on the chart volume bars on the 15 second timeframe.

If you look at specifically where the trade long was started you will see the increased volume on 3 x 15 second time frames for the software to alert the trade to our subscribers.

Additionally, not shown, the software also requires progressive machine liquidity order flow buying identified on the EPIC IDENT system (also proprietary that you can read more about in the white paper link above).

Also you will notice that the set-up included a double bottom in oil trading price intra-day.

And finally on this chart you will see that price was using the one minute chart model support (see blue and red horizontal lines on chart).

Those four signals (progressive volume, progressive machine buying, double bottom, one minute support on chart model) created a strong enough signal to alert and execute the trade in the trading room and alert to the various feeds. The one hour support as show above also was considered in the probability analysis for execution of the trade.

For additional signals I recently wrote another oil day trading article you can find if you click here.

1 minute, daytrading, crude oil

Oil trading strategy set-up – double bottom price intra day on 1 minute chart support (shown on 15 sec time frame) #oiltradingsetups

The five minute chart model includes time cycles for daytrading crude oil.

In this trading strategy the mid cycle point was hit perfectly on the chart at 11:00 AM. You can see that the price of oil hit the mid cycle perfectly and bounced to VWAP area and then double bottomed for the alert to be sent out to members for the trade.

Time cycles are critical in crude oil trading strategies because most of the oil trading liquidity in world markets is now traded by machines and knowing how the machines are executing trades is key. One the primary methods machines use to trade is time cycles. The video provides more in depth discussion.

5 minute, oil, daytrading, strategy

Oil trading strategy set-up on 30 minute EPIC model a perfect hit to key support (trading box of quad) #daytradingoil

The EPIC ALGORTHM 30 minute chart model is shown below and the key support discussed in the video is marked with a white arrow below.

As described in the video, another key trigger for this oil trading strategy intra-day was the key support on the 30 minute chart time frame. 

Also, in the video I discuss how trade had bounced progressively “up the stairs” of each support on the chart model, this is a strong signal for the trading strategy.

oil, trading, strategies

Oil trading strategy set-up on 30 minute EPIC model a perfect hit to key support (trading box of quad) #daytradingoil

And on the one hour chart below you can see the result of a well executed oil trading strategy, the trade went flawlessly and with ease. Intra-day oil trading without a lot of stress.

oil, price target, chart

Oil trading strategy set-up on hourly symmetry chart – price support at trajectory line to oil price target #oiltradesetups

Other Links:

There is also a live raw video link of the Oil Trading Room live alerted trade as it happened – click here.

Link to screen shot of Oil Trade Alerts for this trade of Premium User Twitter feed click here.

Click here to Subscribe to Live Oil Trading Alerts: Use Code “TRIAL50” for 50% off.

Click here to Subscribe to Oil Trading Room: Use Code “TRIAL50” for 50% off.

Link to Free Articles on “How To” Day Trade Crude Oil here.

Any questions about the oil trading strategies reviewed in this article send me an email anytime at compoundtradingofficial@gmail.com.

Thanks

Curt

Article Topics; oil trading strategies, daytrading, crude oil, oil trading room, signals, trade alerts. 

 


Algorithmic Trading Strategies for Crude Oil (CL) Day Trading, Trend and Swing Trading. Intra-Day, Daily, Weekly, Monthly Time-Frames.

This is a supplemental document for CL trade strategies for and as included in our algorithmic client oil reporting.

The various reporting included for our clients includes and is not limited to; live oil trade alerts (on Twitter, Discord, email and live in our Trading Room), conventional charting, algorithmic chart models, various trade signals, price targets, symmetry, time cycles and various other guidance.

We endeavor to assimilate the vast algorithmic data our computer scientists derive for our oil traders to action for a trader’s edge.

The algorithmic material is suitable for actionable mechanically executed trading and are also the models our coding team reference for our crude oil machine learning trade development.

You will find in the array of documentation and reporting we provide a well developed, time-tested proven rules based system for crude oil trading that is one of the best available.  Oil traders should use all the models together as a structured system of trade for it to work to your best advantage.

With each chart model (in various reporting) we may include “best-use” trade strategy notes and/or “rules-based trade indications” for your consideration. The oil trading room and study of the Discord oil chat room is your best resource for real-time learning.

For perspective, review historical reporting on our blog and the various videos we have published to the Compound Trading YouTube channel.

Much of the structured model discipline developed in our system is similar in concept as discussed in this video; Mathematician Who Cracked Wall Street.

Our “How to Trade Crude Oil” Recommendations.

Crude oil price moves within structured areas (ranges) of trade represented on charting on various time frames (different time cycles of trade) often in symmetrical price extensions or mirrored fractals, historical price support and resistance, channels and simple price ranges.

The structure oil price moves within (the range of price) can be one minute charting (and more recently some machine trade is as low as 15 second time-frame) timing through to monthly charting.

Time-frame set-ups / strategies included in reporting are charted as conventional chart set-ups and/ or algorithmic chart set-ups (structures).

Understanding and having each chart time-frame at your immediate access (both conventional and algorithmic) will increase the probability of profitable trading.

You will find in reviewing the raw recorded video feed or in attending the live oil trading room that in the morning a lead trader will often review on mic the various levels of support and resistance on various oil trade time-frames on the charting to establish the most probable areas of trade for the strategy of trade.

The lead trader will also check with all the chart time-frames prior to entering a day trade at various times through the day.

When multiple time-frames agree to support or resistance (especially symmetrical) areas on the charting (with trend) this becomes your highest probability area of trade execution, we have found this to be one of the best oil trading strategies.

Sizing trades appropriate to your trading account, probability of support or resistance (multiple oil chart time-frames in agreement) and time frame for each set-up is a positive strategy.

Using the correct chart time-frame specific to your trading strategy is critical. Generally, the lower (smaller) the time frame the less predictable the support and resistance areas (or structure) of the chart will be. However, the larger time-frames (monthly, weekly, daily) may also have significant “slippage” but the primary structure will often remain intact.

Generally, the idea is to enter your positions based on the structure for the specific time frame you are wanting to trade referencing the other time frame support and resistance or range within the trend. The basic method is to understand the range of trade and execute trade long bias when price is near support for the appropriate time frame / structure and the opposite is true for short trades.

Our staff use the thirty minute model structures (range within trends) most often for primary areas of support and resistance trading signals referencing all other time-frames in their trading strategy. More recently the 60 minute and 120 minute time-frames are being used by our staff as it provides a wider view of the current structure of oil trade (post COVID black swan machine code updates).

Trade positions should be significantly biased to the trending range of trade. 

Below are recent videos from webinars we recorded in our Oil Trading Room:

“How to Profit With EPIC v3 Crude Oil Machine Trades.”

“How to Use Our Oil Trading Services. Oil Trade Alerts, Oil Trading Room, Oil Reports, Trade Coaching”.

The recently released white paper(s) about EPIC v3 explains also its method of execution of trades and is a great supplemental piece of documentation for live human traders to reference for trading bias, see the report here;

EPIC V3.1.1 Crude Oil Machine Trade Software Update | June 4, 2020 White Paper #OOTT $CL_F $USO $USOIL

EPIC V3.1 Crude Oil Machine Trade Software Update Details | White Paper #OOTT $CL_F $USO $USOIL

White Paper: How EPIC v3 Crude Oil Machine Trading Outperforms Conventional Trading Methods

If you have questions about the models below please email us at compoundtradingofficial@gmail.com and if you are a client you can send your Whatsapp phone number to that email and connect direct to our lead trader for intra-day question(s).

Not all charts are updated every week and some concept or test charts are added or deleted on occasion.

Be sure to check the time-stamp of each chart in reporting as the preparation of charts and/or models can take days prior to publication and distribution of this report.

If you are a new client that would like to review historical reports that are still locked on the blog from public view please email the office with your request and we will send you recent report credentials for unlocking reports for review.

Please note, chart links that support the models and unlisted videos from live trade, for reporting set-ups and webinars are now distributed specific to each user or small group of users. If you are using more than one device to access these, to avoid disruption of service, please email us a simple / general description of those devices to assist in controlling dissemination.

EPIC Crude Oil Algorithm Model. 30 Minute Oil Chart Structure (see historical client reporting for the model).

The EPIC algorithm model chart is a proprietary structure that has been back tested sixty months on thirteen time-frames. The model represents the most probable areas of support and resistance in oil trade within this specific time-frame. During a black swan event adjust your trade bias to a larger 60 minute or 120 minute algorithmic model time-frame.

This (the EPIC 30 Minute Oil Algorithm Chart Model) is our most proven oil trading structure / strategy.

The levels noted on the EPIC model are to be used as important areas of consideration for support and resistance (trade signals) for your trading strategy when using conventional charting set-ups / structures and/or other algorithmic charting.

Resistance and support areas on the thirty minute oil trade structure chart are at each line on the algorithmic chart. The primary areas of support and resistance are;

  • Outer quadrant walls / also used as channel support and resistance (orange dotted diagonal lines), the half way point between each is often an executable buy or sell trigger in trade,
  • Mid channel line for uptrend and down trend (white dotted diagonal),
  • Mid quad horizontal (not marked but is at the mid point of the quad),
  • Fibonacci levels (various horizontal colored lines on model),
  • Historical areas of support and resistance (purple horizontal lines on model).
  • The intra-week swing trading range is from thick horizontal gray line to the next (commonly becomes a pivot area of trade). You will find on the larger time frame models of the one hour, two hour and four hour that these key horizontal swing range support and resistance levels are marked as green and gray alternating.
  • The important historical diagonal trend-lines (conventional trend lines) are represented on the chart as thick white lines.
  • Also of note are the price targets for Tuesday 4:30 PM (API), Wednesday 10:30 AM (EIA) and Friday 1:00 PM (Rig Count). The Tuesday and Wednesday targets hit significantly more often than the Friday target (red circles with red or green vertical dotted lines intersecting).
  • At times other indicators are added to the chart such as important trend lines “in play”, moving averages and more.

The video at this link explains How to Use EPIC Oil Algorithm: $USOIL, $WTI, $CL_F, $USO, #OIL, #Trading, #Algorithm, #OOTT as does this video Oil Trading Room – How to Use EPIC the Oil Algorithm Model Chart June 21 #OIL #OOTT and this Webinar 1: EPIC the Oil Algorithm.

When conventional crude oil charting coincides (or agrees) with the EPIC algorithmic model support and resistance this is then considered a significant buy or sell trigger (signal) for crude oil trade.

Be aware (at minimum) of the primary support and resistance areas on the larger time-frames (lower time frames are not as critical) – in this instance (when trading the 30 min time frame) the 1 hour, 2 hour, 4 hour, daily, weekly and monthly charting should be considered when sizing your trades.

Also, more recently we have been adding models for the one hour and two hour time-frames (post COVID black swan event), please be sure to review these models as they are sent out.

This document is sent out to clients for the purpose of “supplemental” to the regular reporting to keep the regular reporting as short as possible. Also, ultimately it is the intra-day or intra-week information provided to our clients that also becomes key for trade bias.

I will also update this document extensively in the near future with a number of live trade video clips to show examples of intra-day trade, swing trade and position trading strategies we are using (for study guide purposes).

Thank you.

Curt

Further Learning:

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.

Welcome to NYMEX WTI Light Sweet Crude Oil Futures.

Subscribe to Oil Trading Platform:

Standalone Oil Algorithm Newsletter (Member Charting Reports sent out weekly at times in report form or updated on email regularly).

Real-Time Oil Trading Alerts (Private Twitter feed and Discord Private Server Chat Room).

Oil Trading Room Bundle (includes Weekly Newsletter, Trading Room, Charting and real-time Trading Alerts on Twitter and private Discord Chat Room Server).

Commercial / Institutional Multi User License (for professional trading groups).

One-on-One Trade Coaching (Via Skype or in person).

Article Topics; Crude Oil, Day Trading, Swing Trading, Algorithm, Algorithmic, Trading, Trend, Position, Intra Day, Machine Trading, Supplement Article

 

 

 


Swing Trading Crude Oil – Next Leg of the Rally Has Started. A Review of Our Strategy.

Since crude oil traded to negative prices, we have been writing a series of articles for our subscribers (some are unlocked for the public) – they are below. This is a continuation of the article series for the current price rally.

Trading crude oil is difficult enough, the technical analysis we will review here (including price resistance, support, retracement levels, time cycles, symmetry) and various other topics such as; Surprise Jobs Numbers, Fed stimulus, Corona Virus, OPEC and more.

The technical analysis for the legs of the rally have been spot on (as of time of writing the public can refer to the first 3 unlocked articles below on Apr 29, Apr 30 and May 2 – eventually they will be all unlocked), the trick is trading it.

In the most recent article on May 29 I was clear that I was starting to short the rally in advance of the key resistance in the 38.57 area on FX USOIL WTI and that doing so was not an easy trade and that if the rally continued in to the next leg that I would reverse the trade – this happened Friday morning.

From May 29:

The big challenge with this oil trade strategy is that I am trading against the wider trend, the trend is up and I am trying to position ahead of the turn down in oil, this is not a simple strategy to execute.

In the oil trading room and on the oil trade alerts feed Thursday / Friday I also had said that I was going to trade the rest of the decisions along with EPIC because I could see the decision coming.

Commentary from Oil Trading Chat Room and Oil Trade Alerts (there is also a live trading room with voice alerts and charting separate of this).

As the price of oil was nearing the key resistance area of the charting in this leg of trade EPIC software (as was I) was shorting the resistance. I was noting that a reversal trade was likely imminent.

Curt MelonopolyYesterday at 8:16 AM
EPIC is shorting 38.56 and will likely reverse above, booting up trading room.

And then when price breached the resistance area we reversed our short trade 3/30 size to 12/30 size long for the next leg of trade. Oil rallied on the day from there more than 100 points.

Curt MelonopolyYesterday at 8:40 AM
On the oil swing EPIC did reverse 12 contracts from 3 short released 4 so far trading 39.19, we’re in live room. Will release P&L as we go here so you can see what it is doing. 38.56 is the mark for sure for reversals.

Oil Trading Room Chat Screen Capture.

oil trading room, chat

Oil trading room chat room commentary on the reversal from short oil to long oil at decision #oiltradingroom

oil trade alert, trading room, profit loss

EPIC V3.1.1 reversal in crude oil trade today from short to long position at key pivot for next leg up in rally. #oiltradingalerts

Strategy, Time Cycles, The Fed, The Virus.

The image below provides an idea of what our oil trading alerts feed looks like as trade progresses.

The strategy for swing trading the oil price rally was long until key resistance areas are near as with what occurred on Friday. The other important part of this current area of the rally is that there was a mid time cycle for volatility occurring around the week of June 3 so we were being extra cautious with our long bias.

The mid time cycle would be an opportune time for oil to reverse in the rally, however, the Fed has once again brought in stimulus, continues to signal all kinds of magic money and signals the possibility of more, the world is re-opening after the initial COVID scare, a surprise jobs number was posted Friday and Trump is talking up virus vaccines ready which is almost guaranteed to have the rally continue.

This will all be on close watch however this week because quite often Fed stimulus, magic money talk, news flow in general is timed perfectly within market cycles (they are not stupid) and this can unwind fast, so we will be vigilant being long in this current leg of the rally – to say the least. 

oil trading alerts, swing trade

Oil trading alert feed screen image of alerts and various lead trader technical analysis for the swing trade in oil.

So What is the Plan for the Next Part of the Trading Strategy?

Some of the questions an oil trader needs to consider in planning for the week coming;:

  • Where is key resistance and support?
  • How to size at key resistance and support?
  • When to reverse the trade if it support is broken or resistance is breached?
  • When to add to the trade or trim the trade?
  • Key areas to trim size within each structure or range – position trading.

Lets Start With The Primary Simple Structure of the Oil Chart Trend Lines (for Part 1 public facing article).

Then in Part 2 for our Swing Trading and Oil Trade Subscribers we will go in to Swing Trading the Time Cycle Charts and Models (helps swing trade and position key areas of support and resistance, time and symmetry decisions which is key for sizing adds and trimming positions).

Then in Part 3 for our Pro Oil Day Traders (Oil Trade Subscribers) we will review the various EPIC Oil Algorithm Chart Models for Day Trading and Swing Trading decisions on a variety of time frames.

Part 1 – Simple Oil Charts for Swing Trade Strategies

The oil chart below is from 11:14:37 AM Thursday, crude oil was just holding on to the support of both the trading box of the “gap” on the one hour chart and the lower uptrending support. 

Oil Chart, trendlines

This is riveting to watch. Basic oil trend lines to watch.

And then Friday morning the surprise jobs number came out and oil rallied again to the top of the resistance on the simple trend line crude oil swing trading chart.

Shown below is the Simple Crude Oil Chart for the Gap and Trend lines.

oil, trend line, swing trade, chart

Simple Crude Oil Chart for the Gap and Trend lines #crudeoilcharting

So what is the Plan for a Simple Swing Trading Strategy for Crude Oil here?

You should be long at the key support areas of the chart, the horizontal trend lines that make up the “gaps” historically on the 60 minute chart and more importantly at the up trending trend lines which oil traders are obviously using to size their trades.

At end of week trade on Friday oil price was left at the resistance area of the upper trend line with another possible upper uptrend trend line and trading box “gap” resistance above.  

If oil fails to hold support or breaches the resistance areas of this chart you will need a plan – this we will cover in Part 2 and Part 3 of this article.

Below are some simple tips;

If oil breaches resistance look to the next resistance in your strategy and be sure that you are aware of how break-outs work paying close attention to previous resistance now support levels.

If oil fails support be sure you don’t get chopped up by death of a thousand cuts around the key support (in and out of trade taking small losses that add up) and you will need a plan for this also.

Knowing the order flow of intra day trade helps a lot (along with various other more technical indications which increase probability that you are on the right side of a move) which is why we have the oil machine trading software side of our business that our oil trading room and alert clients are alerted to. You can find the most recent EPIC white paper here:  EPIC V3.1.1 Crude Oil Machine Trade Software Update | June 4, 2020 White Paper #OOTT $CL_F $USO $USOIL.

In Part Two, “Protected: Part 2 of 3 – Swing Trading Crude Oil: Key Chart Considerations (Time Cycles, Symmetry, Support and Resistance Levels for Sizing)” we will look at more charting and strategies for our Swing Trading and Oil Trade Subscribers including time cycles, other chart time-frames, symmetry, support and resistance, sizing and more.

In Part Three, “Protected: Part 3 – Algorithmic Crude Oil Trading Strategies (Day Trading, Swing Trading, Position Trading, Time Frames, Models)” for our Pro Oil Day Traders (Oil Trade Subscribers) we will review the various EPIC Oil Algorithm Chart Models for Day Trading and Swing Trading decisions on a variety of time frames.

As always, any questions please send me a note via email compoundtradingofficial@gmail.com.

Thank you.

Curt

 

Further Learning:

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.

Welcome to NYMEX WTI Light Sweet Crude Oil Futures.

Subscribe to Oil Trading Platform:

Standalone Oil Algorithm Newsletter (Member Charting Reports sent out weekly at times in report form or updated on email regularly).

Real-Time Oil Trading Alerts (Private Twitter feed and Discord Private Server Chat Room).

Oil Trading Room Bundle (includes Weekly Newsletter, Trading Room, Charting and real-time Trading Alerts on Twitter and private Discord Chat Room Server).

Commercial / Institutional Multi User License (for professional trading groups).

One-on-One Trade Coaching (Via Skype or in person).

Article Topics; How to, Swing Trade, Crude Oil, Oil Trading Strategy