Some observations on scalping Crude

I have noticed this week that as opposed to the indices being affected by oil sometimes the general liquidation affected oil.

It is difficult to trade a market that is being pushed and pulled by other influences.

This week the primary action markets were the indices and that is where I am going to be(ER2) until they settle down to normal or oil gets hectic.

GC
 
just what I expected.Oil reached my two targets this week. It might re- test the low of 56.17 even 56.00 on Monday. If those levels
are broken, expected price to go down to $54. Full analysis in blog in a couple of hours.


cheers :)

www.liofmc.blogspot.com
 
Quote from lolo24ca:

just what I expected.Oil reached my two targets this week. It might re- test the low of 56.17 even 56.00 on Monday. If those levels
are broken, expected price to go down to $54. Full analysis in blog in a couple of hours.


cheers :)

www.liofmc.blogspot.com
More...


my blog is updated with my analysis for next week. You'll also find a long term analysis that might interest some of you, it's about a possible upside breakout sometime in April. hmmmm!!

have a great weekend guys and happy ST.patrick day...don't drink too much ( NOT :D )

cheers

www.liofmc.blogspot.com :)
 
Nice work lolo24ck.

I have been scalping crude only intermittently this week because I am focusing primarily on ER2 at the moment since it is a more intense environment. :)

Seems to me that Oil is in no man's land now but the longer it stays in this range the more powerful the up move will be when it eventually comes. If it can hold above contract lows it will end up creating a powerful failure swing on the daily.

Besides my regular practice of scalping CL I intend to build a long position starting under 55 and to keep it separately I'll do it with QM.

My plan is to scale in and out of QM every 50 points and have a nice position basically free when it starts running. I have done this with casino stocks after Katrina and also with coal stocks and more recently in the Yen and Gold futures.

Some people call this grid trading.
It is a low maintenance way of probing the bottom of a move if one has the conviction and the finances.

Regards,

GC
 
thank you Guru

it's seems like we trade the same products. I'm also trading the ER2. In my opinion ,it's the best instrument to trade right now. I started looking at oil in January. :)
 
Quote from gurucandidate:



Some people call this grid trading.
It is a low maintenance way of probing the bottom of a move if one has the conviction and the finances.

Regards,

GC
More...

Guru, can you give me the gist of grid trading? Based on what I saw in Oanda, you basically need to have 2 accounts. One is a staggered buy at every fix interval/price difference and then the other one is a staggered sale, correct? that's a bit like buying in one account and selling the other account?
 
I have no clue, really, what the exact definition or the method is, I just noticed that if you can identify a market that is consolidating nice money can be made waiting for the move.

BTW I just picked this in your face screen name for fun. If anything I am a perennial beginner and learner. Candidate is referring to being incomplete.:)
 
Quote from lolo24ca:

it's seems like we trade the same products. I'm also trading the ER2. In my opinion ,it's the best instrument to trade right now. I started looking at oil in January. :)
More...

Well, we are flexible and listen to the markets. Isn't that that we are supposed to do?

GC
 
Quote from lolo24ca:

my blog is updated with my analysis for next week. You'll also find a long term analysis that might interest some of you, it's about a possible upside breakout sometime in April. hmmmm!!

have a great weekend guys and happy ST.patrick day...don't drink too much ( NOT :D )

cheers

www.liofmc.blogspot.com :)
More...

A comment and a question:

Next week we won't be trading the April contract...we'll be trading May. April is in liquidation now. Just a heads up.

It looks like you're using something like a $2 stop on your trades. That looks like more of a long term type of trade to me. Are you actually using that type of stop when you trade?

OldTrader
 
hey Old trader. Do I use those kind of stops when trading ? yes. I risk about $1500 to $2500 per week on the CL( if I, see opportunities of course). I started trading oil futures in February. I found that they're perfect for technical trader like my self
 
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