Crude Oil Trading: Take What the Market Gives YOU

Crude Oil Trading: Take What the Market Gives YOU

Here was my Crude Oil Trading Setup for Friday. It took a while for me to get into position, but it was worth it. My first entry today lost 8 ticks, but the next trade earned 71 ticks down to 3P at 4548.

Trade Entry was Short 4619 at 9:05AM CST.

On the Crude Oil Chart below, here is the bracket that formed. We had already went past R2 on the trading session. My thought was to position myself only if the opportunity presented itself after taking the initial trading loss.

Crude Oil Market finally starts breaking down after getting very close to 2/3R Trading Stop Loss on the trade. You can see the market went through the 1P mark located at 4595 on today’s trading.

And the Crude Oil Market continued its downward move to 2P on this trading chart …

On the Crude Oil Trading chart below you see the conclusion of the trade today.

WHY Did I exit at 3P on the trading session?

My answer is a simple one, but one worth mentioning so you understand my reasoning. The average drop or rise in price action was a 3P move before a retracement during this trading week. I used this knowledge of the trading past to help in my determination of a profit target today.

Have a great weekend! Once again, I am to be interviewed by Eddie Horn on Monday at TopStepTrader.

 

Good Trading and God Bless,

David M. Knight
TradeCraze

P.S. Bernard Baruch’s 1st Big Winner: Turning $300 into $60,000

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.