CL Redux
- Thread starter schizo
- Start date
Out .80, back tothe open, will look to get long again given the chance.
Chart says keep getting long but I don't know if they want to pop it much higher in front of fomc, thinking to much, time for vodka.
short 82.40, .25 stop, looking for a buck.
Quote from NoDoji:
I use the 20-bar EMA on the daily chart for larger S/R levels. For example today the ES should sell off if it failed to break through 1190. Indeed there was a nice reversal off 1189.75.
I use the 20 EMA on the 5-min charts for entries with a trend (enter when support or resistance is established at a rising or falling 20). In a strong trend price rarely pulls back to the 20, so I then cross-reference a 3-min chart and use the 20 on that chart for entries. For example, say you sat at your platform around 7:30 ET this morning and wanted to join the uptrend in CL at a good price. Normally you'd wait for price to pull back to the rising 20-bar EMA and buy there. But you can see that the pullbacks are very shallow, so if you cross-reference the 3-min chart, you get a long entry signal right around 7:54am when support is established at the 20 EMA in that time frame. In very strong trends you can jump right in anywhere, like I did yesterday with ES as it was selling off. Screw the EMA's, I'm jumping off the cliff with all the other lemmings, and asking questions later
When a trend has been on for a while and looks overextended you can counter-trend trade (I do that sometimes), wait for the lower high/higher low or DT/DB (I do that more often), or if you're very conservative wait for the first bar that closes above/below the 20 EMA counter to the previous trend. So this morning on a 5-min chart of CL, the 9:40am bar closed below the 20. When the following bar fails to break through that previous bar's high, you have a fully confirmed short signal (lower highs and break of trend).
It's more like training wheels for me than anything else, mainly because so many traders follow it, it becomes a self-fulfilling prophecy.
Long time reader first time poster, just want to say that this is some great insight Doji thank you for your efforts and everyone else's on here and looking past all the bashers that come and go on here.
short again 82.70, .35 stop, target a buck
Quote from schizo:
Because the daily chart for CL is a real mess. Also I didn't get a fill last week for CL. There was like a 5-tick disparity between CL and QM.
BTW I was actually asleep this morning.
You're providing liquidity in an area with forced sellers. Of course you want the thinnest contract to capitalise on the forced selling. From what I can see from historical data, the spreads are 5 cents wide in this contract at this time. 5 cent spread is better than 1 cent spread if you're earning it...
Clever use of the correct tool at the correct time. Hats off!
Nope, no reason to short ES. See my post on the ES thread. It wouldn't surprise me to see it go to 1190 at least.