Part 1 – Crude Oil Day Trade Strategy For 200 Ticks Win From Our Oil Trading Room – Step by Step Tips on How We Traded It and Alerted it Live
The main question for oil traders reading this and /or watching the instructional video should be, “How did we know that oil intra-day would most likely reverse where it did on the chart?”
The oil trading alert went out at 6:37 AM EST and the one prior to that was at 4:09 PM the day prior (Monday June 8, 2020), so it isn’t that we send out many alerts every day, we send our alerts only out when it is the most highly probable area of intra day trade for a win.
So why then at that time of day? What was happening with intra-day trade, the charting, time of day and with other signals that caused us to trade in size long at 6:37 AM EST today?
In short it was the only trade entry alert of the day, the trade was in size and it happened to be at the low price of trade on the day also.
Below are the secrets of this time tested oil trading strategy.
Important Tips for this Simple Intra-Day Crude Oil Trading Strategy
- Time of Day is Important – Today’s 200 tick oil day trade was started in the morning prior to US regular market open and after many traders around the world in different time zones (and overnight Futures traders) have finished their trading day.
- Chart Trend Lines – I teach students to always have classical charting trend lines for support and resistance ready at all times on all time-frames.
- Key Algorithmic Charting Levels – Not all oil traders have this at their disposal, but this was one key reason for our trade success today..
Time of Day.
Time of day when day trading crude oil is very important. In this trade example it was the time of day where overnight futures traders (as far as USA traders are concerned) usually finish their day as well as some traders from around the world also (depending on time zone) and day traders in the U.S. start their day.
When traders start and stop their trading day is not the only time of day consideration.
There are other time of day considerations such as regular U.S. open premarket, regular U.S. market open at 9:30 AM EST, daily settlement at 2:30 PM EST, weekly inventory statistics from the American Petroleum Institute at 4:30 PM EST Tuesday’s and U.S. Energy Information Administration (EIA) at 10:30 AM EST on Wednesdays.
Specifically as it applies to this intra-day oil trading strategy, this trade was taken when the overnight futures traders were typically finished “taking profits or losses” on their day trade sessions and the new batch of day trader liquidity was entering the market. VERY KEY. Again, today’s oil trade was first entered and alerted at 6:37 AM EST, in size.
Below is a screen capture image from our Oil Trading Room with the day trade execution at 6:37 AM for 6 contracts entered – adding to existing 6 contracts in the long position sequence of trade.
Also in the image are some of the alerts in the trading room as the trade progressed (this is the private member oil trade chat room in Discord, there is a live charting and mic broadcast room also).
You can also see in the image the lead trader discussing another time of day coming at 9:00 AM and to be prepared to watch the possible signals of oil trade at that specific time. Time of day in oil trading is one of the best signals oil day traders can use in their strategies.
Image from Oil Trading Room with day trade execution for 6 contracts added to existing 6 contracts long #oiltradingroom
Oil trading alerts screen capture of today’s oil trade that was first entered and alerted at 6:37 AM EST, in size.
Below is a screen capture of the actual oil trading alerts feed showing the lead tech alerting the buy in crude oil.
Oil trading alert screen capture of today’s oil trade that was first entered and alerted at 6:37 AM EST, in size. #oiltradingalerts
The broker platform trade executions by our oil machine trading algorithm are shown (screen shots) in this tweet:
Crude oil trading alert feed today, deep dive early in premarket for a great 200 point rally through the day.
#OOTT $CL_F $USO $USOIL
#oiltradingalerts #machinetrading
Trading Trend Line Support and Break Outs.
In today’s trading action there was a trend line support signal on the charting for the long position at 6:37 AM and the a trend line break later in the day for a break out to continue the rally.
First, below see the initial support area of the trend line chart for the long trade entry. This signal is from a classical 1 hour oil chart with trend lines that included the mirrored fractal trading trend lines. This “mirrored fractal trend line” is where the signal was to enter the trade.
The one hour trading time frame is a significant oil trading signal because it is a larger than say a 1 minute, 5 minute, 15 or 30 minute chart timeline for daytrading. The one hour timing can be used also for intra-week trading signals.
The mirrored trend line fractal is a bit more than basic oil charting 101 in that it takes some technical analysis experience to learn, but not much and if you are an oil day trader it is a good skill to learn because the machine liquidity in the markets use mirrored fractals greatly.
You can see this technical charting skill helped garner a 200 point rally oil trade win today.
Crude Oil Trend line Chart, oil hit key support on the chart and this was one key signal for taking and alerting the trade.
Crude Oil Trend Line Chart, oil hit key support on the chart and this was one key signal for taking and alerting the trade #oiltradealerts
And then later in the day came the trend Line resistance break out.
I marked the intra day oil trend line resistance break out area on the chart below with a second red circle.
I marked the intra day oil trend line resistance break out area on the chart below with a second red circle.
I recently did a video instructional on oil trend line resistance break outs that explains the rules and tips for how to trade intraday break outs above a trend line resistance. It was identical to today’s set up and signals that produced this excellent win.
Here is an excerpt from that article:
Three Possible Trade Scenarios When Price Breaks Out;
1. The break out fails. This is possible so be sure to use stops or reverse your trade if the break out of resistance fails.
2. The break out succeeds and price keeps running without a retest of previous resistance (now support). If price does not come back to test support of the trend line then you have to be prepared to take the trade long and go with price action.
3. And finally, price breaks out of resistance and then comes back to retest the new support (which was previously the resistance of the trendline structure).
You can find Part 1 to the article with video tutorial here:
and
Part 2 for our premium members is here:
Trend line break outs, especially on larger time frame charting such as the one hour like with today’s trading are very powerful signals.
I even publicly gave my Twitter followers a bit of a heads up intra-day because I could see the trend line breach set up coming. My tweet went out at 11:30 AM and shortly after noon oil was in break out mode above the trend line resistance.
oil shorties could get wrecked here
oil shorties could get wrecked here
— Curtis Melonopoly (@curtmelonopoly) June 9, 2020
In Part 2 of this article we will take a look at how the swing trading strategies played in to this set up for our Swing Trade Alert service members.
In Part 3 for our Pro Oil Day Traders (Oil Trade Subscribers) we will look at the algorithmic charting structures that enabled this successful trade.
The video tutorial for this specific article (Part 1) is below.
As always, any questions please send me a note via email [email protected].
Thank you.
Curt
< Updated June 10 7:41 AM EST >
There is another classical charting reason possible for crude oil’s 200 Point reversal rally intra-day, Fibonacci level 50% was hit perfectly.
Nonetheless, there were strong algorithmic charting reasons for the reversal rally intra-day that I will go in to in more detail for our oil trader members in Part 3. Considering the machine trading liquidity in the oil trading markets I would weigh those indicators / signals much more greatly than the chart below.
There is another classical charting reason possible for crude oil’s 200 Point reversal rally intra-day, Fibonnaci level 50% was hit perfectly.
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; Oil, Trading, Alerts, Oil Trading Room, Strategies, Day Trading, Intra Day, Trend Lines, Break – Outs, Support, Time of Day
Trading the Trend Line Break-Out for an Intra-Day Run-Up of 200 Points Happened Today in Oil Markets.
Below is a Step by Step Simple Guide of How To Trade this Strategy in Crude Oil.
Today crude oil broke out bullish in intra day trade of a trend line resistance. This simple step by step guide will help you get the big wins when they count.
I didn’t take the trade. I had alerted the trade set up to our oil trading room members on the alerts feed, and DID NOT TAKE THE TRADE, ugh.
But, not every trader takes every trade.
Below is a screen capture of the oil trading alerts feed – one of the intraday communications to our members about the intraday bullish set-up developing.
“So what I’m saying is I don’t think intra day shorting is a best practice idea while this possible squeeze is threatening shorts, it could be very bad for shorts, especially with a blow off in to 30 31s possible, see upper arches (gray).”
Oil trading alert to oil trading room members to be cautious of a bullish squeeze setting up intraday. #oiltradingalerts
Below are the tips and steps for you to follow.
Part 1 of this article explains the conventional charting for this set up and how to trade the basics of the strategy.
Part 2 provides further technical insight for our oil trading room and alert members – it will be sent out to members in about an hour. Part 2 also includes algorithmic levels, price extensions, Fibonacci levels, price targets and time cycles.
First, lets look at the trend line set-up trade on an oil chart.
CHART – Simple Crude Oil Intraday Trading Strategy
The simple one hour crude oil chart below shows you the trend line resistance and intraday trade action when trade broke out #intraday #crudeoiltrading
Steps to Trade an Intra Day Crude Oil Trend-Line Break Out:
- Chart the Set-up.
- Oil traders should be constantly charting trend lines on whatever time-frame they are trading. In this instance I charted the trend line resistance on a one hour chart.
- Three Possible Trade Scenarios When Price Breaks Out.
- The break out fails. This is possible so be sure to use stops or reverse your trade if the break out of resistance fails.
- The break out succeeds and price keeps running without a retest of previous resistance (now support). If price does not come back to test support of the trendline then you have to be prepared to take the trade long and go with price action.
- And finally, price breaks out of resistance and then comes back to retest the new support (which was previously the resistance of the trendline structure).
- Trade Price Action.
- In this example, crude oil price intraday broke out of the trend line resistance and then retested the level and then continued for a bullish 200 point run up in price. When the retest happened and support held, this was your golden opportunity for massive gains to your P&L.
So that is what a simple strategy in crude oil intraday trading looks like.
It comes down to always be charting your intraday price action and learning how these set-ups work. And then simply managing your trade execution with trade size management, technical levels, stops and sound thinking.
As a last side-note, I will say that ideally you want to get the trade started at the support of the actual structure of the set-up (as shown in the EPIC tweet below), however, this is more advanced and I will discuss in detail in Part 2 of this article.
Power of trend line price breakouts from a trading structure support, crude oil intraday near 200 points from oil trade alert buys earlier #OOTT $CL_F $USO #oiltradealerts EPIC V3.1.1 software was in deep at 24/30 size in position trading, very large size. Lead trader was also.
This trade set-up strategy was the day after the EIA report on Wednesday, for other simple intraday strategies visit our website. For a more in depth look at intraday crude oil trading strategies try this article (click here).
Thanks for joining us in our trading journey, we endeavor to build the best winning oil trading alerts and oil trading room service for oil traders.
Part 2 of this article is here:
Any questions please send me a note via email [email protected].
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; simple oil, intraday, strategies, trend line, break outs, trade, day trading, crude oil, trade alerts.
How to Trade an Oil Price Sell-Off in to Futures Settlement at 2:30 PM EST for Reversal.
This Reversal (Snap-Back) Crude Oil Trade Provided a 190 Point Range for Our Oil Trading Room Traders.
One of the best ways to increase your oil trading profit is with reversal trading. Crude oil can be difficult to trade, so knowing where reversals in price are likely to occur (support areas of charting) greatly helps a trader with winning trade signals.
A Warning! In a reversal trade it is important to manage your stops, bias, trade size in accordance to your account size.
The example below is of a 30 contract size (possible) oil trading account used by our software EPIC V3.1.1.
I personally didn’t take the trade because I was tired and I had a few other reasons. But it cost me some excellent profit because the price of oil then reversed and rallied near 200 ticks – it would have been a great win for me.
Some of our traders in our oil trading room did get the win so that was great, so I learned a lesson for next time.
The biggest lesson being that when EPIC V3.1.1 alerts an oil trade and the signal is “in-play” it is best for me to get with it and take the trade because the software has been winning non stop since it’s “black swan” code updates.
The oil charts below are models developed by our trading team that are proprietary to our oil trade alert and trading room members, however, if you know how to properly chart conventionally you can also take advantage of this set-up.
Let’s start with the set-up for the possible reversal trade on the one hour chart model. The one hour oil chart suggests that a turn in price, or a topping, is near (refer to the curved grey arch on the chart).
More specifically to this trade set up, the yellow trend lines (algorithmic trend lines) provide for a possible area on the charting for intra-day support in a possible sell-off scenario in to futures settlement at 2:30 PM on Thursday May 7, 2020.
The alert went out to the oil trading room and trade alert feed as follows;
You can see on the oil chart below that price was crashing at 12:18:17 EST time (or 12:18 PM) so the possible set-up for a bounce after oil settled at 2:30 PM was setting up.
If you’re thinking of swinging crude oil for a bounce, we’re getting closer to support areas.
If you’re thinking of swinging crude oil for a bounce, we’re getting closer to support areas. #oilswingtrading
Intra-day time cycle on crude oil is 1:45 P.M. for a possible bounce (reversal), careful with expecting VWAP to hit with some funds turning short.
The chart below and guidance provided to subscribers was also that at 1:45 PM a time cycle intra-day was possibly at an inflection point (or peak / bottom) and this was reason to be on high alert.
Intra-day time cycle on crude oil 145 for a possible bounce, careful with expecting VWAP to it with some funds turning short #oiltradealerts
Screen capture of oil trading alert feed telling oil trading room position started.
Then at 2:44, so 14 minutes after crude oil officially settled for the day the alert went out that we were opening our trade position long at 8/30 size at 24.67 and the screen image below shows some of the other alerts and comments as the trade was going well and in a winning position.
Long 8/30 24.67 FX USOIL WTI trade on CL — EPIC.
Screen capture of oil trading alert feed telling oil traders position started – Long 8-30 24.67 FX USOIL WTI trade on CL — EPIC.
Screen capture image of oil trading room when I alerted the trade position opened and discussing trading strategies.
One of the things we do in the oil trading room is provide charting and as much trade strategy guidance for our subscribers as possible.
This image below is a screen shot of the Discord room where we’ll chatter and share ideas and there is also a live mic and charting trading room where I walk our traders through the trades on voice broadcast live and share the charts we are using – both run at same time..
Screen capture image of oil trading room when I alerted the trade position opened and discussing trading strategies.
If the trade works, the price target would be Friday 3:00 PM EST ish for 29.00 ish.
The guidance provided to the trading room after we entered the trade was the price targets and time of the targets possibly coming in to affect. The chart below shows an arrow that provides our traders with a trajectory of trade should the plan being working.
If the trade works, the price target would be Friday 300 PM EST ish for 29 ish #oiltradingstrategies #swingtrading
The crude oil one hour chart with symmetry time cycles has been an amazing model, working very well, details on video.
The image below shows the 1 hour algorithmic model and the symmetries in crude oil trade, time cycles and price targets. The reference to “the video” is that we record all trading sessions and make them available to our subscribers for $STUDY and review.
The crude oil one hour chart with symmetry time cycles has been an amazing model, working very well, details on video #swingtrading #oil
The Live Oil Trading Room Raw Video Feed
At 1:12:40 on the video timer is where the oil trade starts, you can see and hear the actual trade guidance for the signals I am providing our traders as the trade sets-up.
There isn’t a lot of trade guidance on mic because much of it was provide in advance in the trading room and on alert feeds, but you can idea of how it works in the trading room on the video. There is also a time stamp at near bottom right of screen in the video on the chart itself.
The Chart Below Shows Trade Long Entries (green arrows) and Take Profit Areas Selling (red arrows).
Crude Oil Trade Alerts dot plotted on 1 minute grid chart of EPIC V3.1.1 trade from oil trading room earlier today.
Crude Oil Trade Alerts dot plotted on 1 minute grid chart of EPIC V3.1.1 trade from oil trading room earlier today. #oiltradealerts
The trade on the 60 min symmetrical time cycle model (white arrow), long position after sell-off in to daily settlement.
The trade on the 60 min symmetrical time cycle model (white arrow), long position after sell-off in to daily settlement #oiltradealerts
The reversal trade works really well for oil traders as long as you manage the trade size according to your account size and be sure to stop out if you are on the wrong side of the trade.
Oil can trend down or up for weeks so staying on the wrong side of an oil trade can cost you your whole trading account.
So if you know your areas of support on the most dominant time frames (in this instance the 1 hour charting) and you execute your long trade after it looks like the sell-off has stopped then it becomes simply managing the ebb and flow of trade according to your personal style thereafter.
BUT IF IT FAILS, my best suggestion to you is to close the trade sooner than later.
I’ve also written other articles on intra-day reversal oil trades – they are more in-depth and a tad technical, but if you want to dig deeper in to this topic here are a few recent articles:
- Buying Support in to the Plunge During Crude Oil Intra-Day Sell-Off | Oil Trading Room Video, Alerts, Strategy.
- 134 Ticks in 1 Hour (Post EIA). Crude Oil Trading Tips: A Simple Intra-Day Reversal Strategy..
My tweet summarizing the oil trade on my personal Twitter feed (shows alert screen shots);
When crude oil sold off in to 2:30 settlement yesterday, EPIC V3.1.1 machine protocol went in deep long for swing trade, I didn’t follow… EPIC got it Direct hitFireBow and arrow I didn’t – in hindsight, likely cause I was tired. Good lesson.
#OTTT $CL_F $USOIL $WTI #OilTradeAlerts
When crude oil sold off in to 2:30 settlement yesterday, EPIC V3.1.1 machine protocol went in deep long for swing trade, I didn't follow… EPIC got it 🎯🔥🏹 I didn't – in hindsight, likely cause I was tired. Good lesson. #OTTT $CL_F $USOIL $WTI #OilTradeAlerts #MachineTrading pic.twitter.com/bcNUzTTER5
— Curtis Melonopoly (@curtmelonopoly) May 8, 2020
In the tweet below, I was explaining that oil traders would want to be focusing on trades that are on the outside extreme ranges in price.
The reason for this is that oil recently rallied off lows and we have a time cycle and price targets that see oil topping near – term. When oil starts to top or bottom in a wider time-frame it is then best to trade the range of trade on lower time-frames (such as the 1 minute, 5, 15 or 30 minute charting) until the larger trend is formed.
Oil traders, they’ll want to take the trades on the extremes the next two weeks #OOTT $CL_F $USO The whippy extremes will provide the best risk reward for oil traders.
Oil traders, they'll want to take the trades on the extremes the next two weeks #OOTT $CL_F $USO The whippy extremes will provide the best risk reward for oil traders.
— Curtis Melonopoly (@curtmelonopoly) May 6, 2020
So that’s the reversal snap-back trade in crude oil futures that you can either consider as a day trade or an intra-week swing trade. There are of course many other considerations we use (our software has over 9000 rules in its instructions), but for the purposes of a human trader, the above article should help get you started.
We endeavor to develop the best winning oil trading alerts and oil trading room service for oil traders.
Any questions please send me a note via email [email protected].
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; oil, strategies, reversal, trade, swing trading, day trading, crude oil, oil trading room, oil trading alerts.