Limbo says How LOW can you GO!

Hello Traders,

lessonslearnedTrade Correctly. ONLY TRADE VALID TRADING SIGNALS! NO Signal NO Trade!! Market moved down considerably on the day … I captured a few screen images of the trading day.

Market made a high at 9490 on the Morning and went down to a low of 9086 during the trading day … what a rollercoaster down ride for the day.

Trade #1: I started off my trading attempting a long at 9482 at 8:07AM CST this trade hit its stop at 9469 at 8:11AM CST.

Trade #2: Short at 9468 for 2 contracts at 8:11AM CST. I took two off at 9427 and 9431 … this was around 2P on the trading day. I made sure to make up for my trading loss on the first trade and netted over $500 after the smoke cleared …

Who would of thought the market was going to go on down … I didn’t have a plan to trade past my winning trade short. My object on my trading day was to get a winning day and move on. In hindsight, you can say all kinds of stuff … but it was an interesting day to observe.

My initial target on my trades were hit. If I was following this trade by the 200 SMA line off the 89 tick chart, then it said to not go below 9404 during the trade.

This would have been a tough thing for me to stay in this trade … only trading 2 contracts for the whole move down, in my very humble opinion.

When the market briefly moved above the 9404 mark at 8:49AM CST, then this would have been a tough area for me to continue to stay in the market on the short side. This also crossed above the Pivot Point on the trading day at 9389 when the market attempting its first failed recovery.

The market went down and through 10P on the trading day … this is normally the top of the range in this case I am looking for in any given trading day … this was located at 9288 on my trading charts today.

We went through this like hot butter on a knife!

And we kept on going lower during the trading day …

The market went through support levels of S1 and S2 before finally temporarily halting to go lower … the S2 level on the trading day was located at 9199.

It turned out to be a very interesting day on the short side of the market in crude oil … going from a high of 9490 to a then current low of 9086 during the open outcry trading session here in the states.

This was a market that went into free fall during the trading day … and at one point over 3226 stops were hit when the market reached 9295 at 10:29AM CST.

From this point the market continued to free fall another 195 ticks reaching down close to 9100 … but not to be outdone. The market tried to stabilize and create a double bottom, but this was not to be …

On the other side of the trade, there was a lot of support in the market between the 9100 and 9080 levels … so I suppose this will be the test of support next.

The ‘insiders’ were in full control today … especially when I saw this on the 5 Minute Chart today … a Shooting Star … but I didn’t realize the significance of it at the time it formed until later on in the trading session …

From this point in the 5 Minute Chart the market went on a free fall down on the trading day … was it a point to be seen earlier and to be taking advantage of???

On another sidenote, I am enjoying a book I am reading that is actually quite informative and I highly recommend it:  A Complete Guide To Volume Price Analysis

It is from Anna Coulling who shares a similar interest in VSA or as she calls it VPA … I learned a lot from Tom Williams myself, but this book is a lot better than the training I went through and is a lot cheaper to boot!!

In this book she goes on to mention buying climax’s and selling climax’s among other things like hammers and shooting stars. You need to add this book to your trading library!!

 
God Bless and Good Trading,

David AKA Tiger

P.S. From Yesterday: Silver Better than Gold!!

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.