Crude Oil FX: $USOIL $WTI ($UWTI, $DWTI, $USO, $UCO, $CL_F)
November 14, 2016 EPIC the Oil Algo Oil Report.
Welcome to my first real report. This will be my smallest least detailed. 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 algorithm story. This charting is 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 43.32 (10:48 PM ET Nov 13, 2016). Some thoughts…
Diagonal Trend Lines (Blue) – Price
Thicker lines are more important (typically proven through previous time / price cycles).
There is a diagonal trendline at 43.11 intra day that runs just under the price (in blue with green arrow pointing at it) – it isn’t a real important TL line (thin) but a TL line nonetheless. Why is this important? Everytime the price has crossed one of these in recent trade (last few months) it means another leg down. Very important.
And there is another right below it (yellow arrow) at about 42.85. Watch them both.
Above, there is one at 45.68 intra day (light blue arrow) – important because price has been strongly rejected here.
Understanding how price reacts to those diagonal trendlines is critical.
So you have your most important diagonal trendline as resistance at 45.68 and trendline support at 42.85 / 43.11. And remember they are diagonal so they change intra.
Horizontal Trend Lines (Purple) – Price
You have support horizontal trend lines at 43.33 and 43.03 from previous time / price cycles – which are important. Other noteables are at 42.81, 41.86, 39.04, 38.33.
Most noteable resistance over-head is at 45.78 – this is important.
For now (as price trades now) your important support is 43.03 / 43.33.
There are obviously more – that you can see real-time in our trading room intra-day or over time as a subscriber (if you cannot be in the trading room) you would learn how to use the charting on your own for various trading decisions.
Moving Averages
There are many moving averages (and related disciplines – I mentioned I review around 50 indicators) that we will get in to over time… but the secret is to focus down on what currently is most affecting price so you can use it as a trading edge. It just happens that right now the 200 day on the 1 hr has become recently critical as resistance.
Price Action
Price action at horizontal trend-line resistance determines another leg up or establishes resistance.
You will notice in the bottom left hand corner that when price bounced off an alpha algo line (red dotted) and started to go up… that it sliced through those diagonal trend – lines (blue) with-out an issue – BUT when it did eventually become an issue (yellow arrows) then that established resistance and the price of oil started to trend down.
And further, every-time the price went below a diagonal trend-line (blue) it dropped faster than it otherwise was.
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
That seems to be 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 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