Crude Oil Price Action

Thursday: February 11th, 2016

Crude Oil Futures Day Trading

So what do we know about Crude Oil Price Action Price Objective 2609 Hit in Yesterday’s trading …

Early Trading Yesterday Showed the Following:

  • There was some buying pressure around 2622 (RBV 1081)
  • There was some selling pressure around 2710 (BBV 939)

I attempted a short trade 2669 and was stopped out at 2680 at 8:18AM CST.

Right now we see a trading range from S1 2664 to 2710 in the Crude Oil Futures Market … standing aside right now waiting on a tiebreaker HVB price action bar to lead the way now.

So the first trade (opening) can be according to how I interpret the Price Action in the Curde Oil Market. The price action looked like it was going to continue on down to the LOD and dow to the level I am looking to achieve located at 2609 from the Fib. Extension.

My opening trade today took out the top 1R stop loss on the trading sheet, if I would have placed it there.

1R (Full Risk) 25 ticks today: 2694 … market retraced to 2697 so getting out at 2680 or 1/2R seems to be the thing to do and save the ammo on a trade that has no trending characteristics to make the move.

Yesterday, I ended the day down 13 ticks overall on 3 trades. I am down 250 overall on my trading account and 1K away from my combine profit target at TopStepTrader with 6 trading days left to go.

What I KNOW:

My first two trading days I took on more RISK than I should have and allowed my trading losses to accumulate approximately $150 over 2 trading days more or $300 more than I should have allowed myself to lose per trading day.

With this taken into account, then my winning day one on Wednesday after the Crude Oil Inventory Trade with a plus 85 tick win would have placed my trading account into the positive.

The more I trade the Crude Oil Futures Market … what I know … is this … VOLUME is the most important indicator of them all. In other words, Volume should be the first overall rule, then anything after that is how it should operate.

We made a Low of Day at 1:37PM CST of 2605. So in fact, we went to the Fib. Extension and pushed off from it! Very very interesting!!

We also saw Blowoff Volume enter the Crude Oil Futures Day Trading Charts at 10:55AM CST yesterday:

How will this play out for Friday? Stay tuned in …


Kind Regards,

David M. Knight



About The Author

David M. Knight

I am a 30 Year Futures and Commodities Trading Veteran. In addition, I enjoy games of skill and chance like: poker, craps, blackjack and roulette. During my professional career, I have developed and implemented successful trading strategies and methods; along with winning systems in games of skill and chance. Join with me on our mutual journey together.