Now that is a Trading Setup

Crude Oil Trading April 8th 2015

April 8th, 2015: Wednesday Crude Oil Inventories Today!

Hello Traders and Friends,

My opening trade was a mistake on the T4 platform. I forgot to make the two RED on my trading day although I have already saved my trading platform from the previous day. The price ladder does not hold the setting placed on it (parameters).

This unfortunately placed me in the hole 13 ticks to start my trading day. If I would have placed the order correctly, then it would not have been filled … it went in as a market order and not a stop limit order.

Trading today has been choppy since the crude oil inventory report. I did not catch the initial drop after the report. I have tried to be on the short side and only up a few ticks.

At 10:55AM CST, I have seen the market trying to set a bottom with volume respectively at 840 and 610 a little below the S1 support level. Will it go up or down or nothing for the rest of the day … I am looking to follow the momentum to get me in. Notice to bring me in it will have to stay above the Yellow line crossing the diagonal which is my trend line on the trading day to warrant a long.

Long Trade Setup with Volume: (This TRADE DID NOT HAPPEN … no Trade!)

Need what I call a tiebreaker to start looking to get in again … I am looking for high volume bar on the charts to help me determine if the market wants to move or not now.

Trade of the Day became a short entry. I was finally able to position myself short at 5135 at 11:25AM CST. I am looking for a retest of the $50 a barrel area on the trade.

So I am basically looking to trail this stop on 1 contract to see how far it will fall … my profit target on trade is 5007 overall, but I will take whatever the market decides to give to me as I continue to move my profit stop as the market moves.

Patience wins the day overall.

Trailing profit stop shown on the “blue line” trailing the market on the move down right now.

Exit On Trade at 11:59AM CST.

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.