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Crude Oil Trading June 3 2015

Wednesday: June 3rd, 2015

Crude Oil Trading: I am at the start of a new TST $10K Trading Combine. I WILL PASS THIS ONE!

NO more dumb trades and be positive of my entries and exits. Maximize profit when I can on one contract and stick to my targets when I should.

There is only one way to pass the combine … and that is to trust myself and my trading plan … but NOT EXCEED the DAILY Max Loss at any time!!

Today’s Trading Recap:

CLPORT Method:

Trade #1: Short Entry at 6062 at 8:22AM CST. Trade Lost 9 ticks. Trade Exit at 6071 at 8:29AM CST.

Trade #2: Back to Pivot Point Long at 6073 at 8:30AM CST. Won 13 Ticks. Trade Exit 6086 at 8:36AM.

This trade was to see the market go to pivot point my 1P target was 6096 on the trade. It made it back to 6094 before retracing and stopping me out at my protective profit stop.

Object of this trade was to trade it back to the Pivot Point expected the market wouldn’t show its hand until after the CL Inventory Report today.

CLPIT Method:

Trade #3: Short at 6091 at 9:32AM CST. My actual entry point was 6088 … two ticks below the pivot point, but I was filled at 6091 on the trading platform.

Trade went on to pass by 1P and 2P until it met the S1 Support Level located at 6023 where it is attempting to bounce …

The Most Manipulated Economic Report in the History of Trading … IN My Humble Opinion!

Market trying to bounce here at S1 located at 6023 today we saw a HVS 700 bar trying to make a bottom on the down side pressure here.

Trading Spreadsheet at time of trade … volume levels are not updated … reason market moves way too fast to update volume at this point in time of the trade.

In any case, this shows the market the way I am looking at it right now as I am trading looking for a continued downward movement until proven incorrect and out.

From the Bounce the Market is trying to form a bottom is it enough to hold it or not? Personally, I don’t care I am lock and loaded a little above the 1.5P Level for a Protective Stop until we either take me out or break through S1 (Support Level) located at 6023 in today’s trading.

S1 trying to hold off the short advance … will it?

Finally, we bust through S1 Support Level on the Trading Day … does it have enough power to reach 7P Profit Target located at 5940 today?

Remember, I measure my 7P Profit Target from the Open of the Market and not the trade itself. Today the open was 6102 and the range of the trade is 162.3 ticks today from the open according to my trading range spreadsheet.

Here is the biggest challenge trading 1 contract, in my humble opinion.

How far do you trail your profit stop? You don’t want to bring it too close to the market, but you also want to maximize profit to the best of your trading ability.

The 200 Bar SMA can be used as a guide, but it is not perfect. You also have the prior support/resistance trading bars (price action) left behind by the market which will form major/minor support/resistance areas.

Right now as I am looking over the trade … I am expecting the market to retrace back to S1 … so I don’t want to be on that number … but I also don’t want to be so far above it that I leave money on the table on the retracement … so it is a delicate balancing act …

This more than any other thing separates the good from the bad traders … (or losing) traders … if you want to call them that.

Your goal is to cut losses short … let profits run … but you also want to take profits on the run!! There in a nutshell is how I view trading successfully against unsuccessfully trading.

Can S1 become resistance?

You will also note I placed a trend line on the charts, which I believe we will have to stay below to continue our downward assault to 7P on the Trading Session.

We break thru S1 Support Level which has become Resistance Now … can we get past the daily low on the trading day at 5969?

Market continues to show signs of weakness as we continue to slowly creep down … still haven’t seen any blowoff volume to show the move to the downside is anywhere from completed at this point in time.

Market continues its downward momentum to the S2 Support Level located at 5941. My profit target trading exit is a little above this at 5943 on the trade.

Here is where I bracket the market within 20 ticks … willing to take either or at this point in time on my short trade from the CLPIT Method today.

Profit Exit of 7P on the Trade … exit trade at 5943 at 12:17PM CST. from an original entry of 6091 a little after the CL Inventory Report. This trade made 148 ticks or $1,480 before commissions.

In conclusion, crude oil trading today I had 3 trades. 1 loss and 2 wins. The loss was for 9 ticks and the wins were for 13 and 148 ticks, respectively today.

Pretty damn good day … if I say so myself!

Cool Beans!

 

Kind Regards, Good Trading and God Bless,

David M. Knight
TradeCraze

P.S. Honestly, I do not know how much longer I will keep my CLPORT Method FREE. It still is at this point in time as I put this post up on my blog.

P.S.S. A very insightful article from Richard Demille Wyckoff: How the Technician Judges the Stock Market.

 

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.