CL Redux
- Thread starter schizo
- Start date
I trade technical price action, here's the scoop:
1. 60-min chart, connect the Tuesday low to the Tuesday overnight low to get a lower trend line. Thursday overnight action found support there, so...
2. Place a parallel channel line across the swing high in between, the high from Wednesday.
3. The dip to the 95.00 zone in pre-market yesterday found ready buyers, so the LTL is now confirmed for a 1-2-3 long setup.
4. Yesterday's high came within a few ticks of that parallel channel line.
5. The overnight session formed a bull flag with Wednesday's resistance holding as support (well-defined trend on the 60-min chart).
6. Calculate a measured move* off the bull flag (flags generate a measured move reaction more often than not), for a new high target of 98.26.
* 96.92 - 95.08 = 1.84 and 1.84 added to 96.42 flag low is 98.26
Hope that helps!
If I watched other markets, or paid attention to the actual news reports, I'd never put on a trade because the price action in CL so frequently marches to its own beat.
As a beginning CL trader I once watched a strong trend for over two hours run two or three points without trading. I was waiting for a reversal signal because the inventory report was very bearish.
they are gonna break this flag and take another shot up aren't they? I don't usually watch 5 mins but we are getting to the nitty grittyQuote from NoDoji:
As a beginning CL trader I once watched a strong trend for over two hours run two or three points without trading. I was waiting for a reversal signal because the inventory report was very bearish.
Those days of 300-cent ranges with multiple oscillations to trade are long gone, done and over with. Now all that exists are 0 to 1 algo-spike or slam bursts of price movement, followed by endless hours of unbroken, tight-range chop per trading day.
Leaked reports, who knows what when, what correlates to CL higher or lower is irrelevant. The tape is pinned flat all day every day except for brief, abrupt bursts.
Catch some of that lone move and you made money. Miss for any reason, and you'll stare blankly at dead charts for the remainder.
If you are on the wrong timeframe or a shitty trader I agree with this sentence.
I agree CL has been a little harder to trade lately but there has been some good days if you are shooting for the home runs. TF has been a lot better than CL lately. But you can still scalp for smaller targets with CL. You just have to change your game plan. And no, I will not show how I trade. With the charts you posted are you telling me you are now trading ES instead of CL/TF?