Yes! Volatility is back in Crude Oil!

Hello Traders, Coiled Snake

My opening trade this morning was what I would like to call a COIL Pattern. The market was trading right below the Pivot Point at 9466.

My entry point was 9459 at 8:09AM CST. I was trading 2 contracts. The first target on the trade was 9479 (20 ticks) today with a 1.58 ADR on my daily range to setup my P and R targets and stops.

As I am looking at the trade, I see upside potential to 9550 on trading right now today. My nearest profit target is 4P at 9538 which is where I am looking at as a very serious exit point today ahead of the CL Inventory Report.

Crude Oil Breaks Out at 9459 moving towards the Pivot Point and through. Notice the high volume spikes (Pinkish/Red) ones on the chart. We also saw some sell stops runned as well on the chart below.

Market continues its breakout and moves to 4p profit target at 9518. My stop on last contract was moved to 9499 right at the 2P mark as the 2nd BLUE High Volume Spike comes in the market higher than the previous one shown on the chart.

This is what you call protecting your profits while still allowing the crude oil market some room to move and breath. Yes, you need to have a plan for this … to allow yourself the possibility to continue to rack up gains.

Remember it is easy to get in the trade … have a plan before you enter the trade. KNOW your TRADING PLAN and PLAN YOUR TRADE then EXECUTE YOUR TRADING PLAN according to your trading rules of entry and more importantly allowing room to keep the runner in the market if possible.

This trade concludes here on the chart below as we break below perceived support at the time of the trade at 9501. The 2nd contract exit on the trades was 9499. This made for a total of 60 ticks trading 2 contracts or $600 less your commission cost.

Exit on trade was at 8:52AM CST. This made for a 44 minute trade. It can seem like an eternity when you are in a trade, but it is a lot of fun managing the runner (your winner) part of the trade.


God Bless and Good Trading,

David AKA Tiger

P.S. Trade At End of Day … No Trade Taken …


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.