CL Redux

Quote from Visaria:

i'm out at 98.00, btw :mad:

Where would you guys have exited if you had my trade on? Remember target was 96.00.
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thats a hard one, for a swing trade I thought Monday was going to be nasty

this can easily go 100+
 
TBH, i figured if it broke 96.00, good chance of it going to 95. The low was 96.35. I'm thinking, retrospectively, stop should have gone to 97.0 from what i can see on the chart. Not sure what the point of risking so much (retracement back to 98.66) for an extra 35 ticks was.
 
Went to lunch and missed my entry long at the 20 EMA (100 EMA on 1 minute chart) in Sim mode. Looks like it held great for support.

2011-05-20_CL.png


I use the 100 EMA and a 1-minute chart. Been looking to enter into trades at the EMA and exit at extremes (bollinger bands). Seems to work pretty consistently. Key is to scramble out and take quick losses when it doesn't hold. Also got to avoid a sideways market. I figure taking profit at an outer band captures the "most likely" move.

I've noticed the 1 hour chart with the same settings seems to show some profitable entries as well using the same type method.

2011-05-20_CL.png


In fact most futures contracts (DX, GC, TF, ES, ZN, 6E) seem to respect that EMA and the outer bands in similar fashion. Visaria, your trade from earlier actually stopped around the area of the lower bollinger band on my 1 hour chart. Not sure if that's a reliable exit signal though as price can often times run up or down the bands for a while. If anybody's got any thoughts feel free to share. Anybody else use a similar method in their trading?
 
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