3/14/12 Oil Futures

These are my charts from yesterday. Of course being that I didn't trade at all yesterday, everything went smooth as silk. LOL. I mean, just one entry to the next, clear signals, which all agreed, pretty much no ambiguity at all.

Check out the charts:


There was a fairly innocuous entry around 8am, which normally one would only take for 20 pips, but that's when New York comes online, so I'd likely have ridden that one. Thats about 80 pips right there. We'll say 60 to be conservative, just in case I would've gotten in and out late.

Then there's that huge run up. You see how price turned down a bit, then bolts straight upward. Well that's stop hunting. The price action is turned downward, so everyone goes short. Then the Illuminati call the "Working Group on Financial Markets" and they turn it around just far enough to hit 80% of the stoplosses, then allow it to continue down again, which it did here in significant fashion. So if you know what's happening there, it's an entry signal to the downside. BAM! 100 pips, to approximate very conservatively.

When the Bollinger Bands (purple lines) move inside of the Keltner Channel (yellow lines,) that indicates a significant move in price action is going to occur. Those are some technical indicators of my own that I have added to these charts. Just by way of explanation. The MACD oscillator on the bottom will help to show which direction that movement is going to go.

Anyway, so you see all these factors come together here, and it's clear what is going on. Then BAM! It goes crashing down, but at the bottom, you get another plethora of entry signals. This is significant after certain levels. You look for it there, because you suspect a reversal is coming. Well it did. I wouldn't have just taken this for 20 pips. I would expect this to meander up slowly into the afternoon, with occasional zigzags for purposes of stop hunting.



Here we see the same chart, from later in the afternoon. It meandered up, took a pretty obvious entry at the top, if there was any doubt, it angled downward at the top, although it did hit a significant level as well. Anyway, there were numerous entry signals at the top. So you could get in for 100 pips and just chill. And BAM! 150 pips. Not bad.

There might be some danger that you might think it is a bottom when it turned back up about 1pm (13:00) however, there is an entry there to the downside. This actually is a centennial here, so I would expect alot of traders would use that as a target at which to exit or scale down. If you take profit there, that is fine too. I would however also stay in after the initial 100 pips, just being that it was crashing down so hard that it was likely to continue. Let your winners run!

To summarize: The initial swing was conservatively about 60 pips. We'll say the second wave downward was 100. Then it meandered up, we'll say 80. Then back down for 150, all with superclear entries and no disagreeing indicators. Truly a day to have overslept and then run errands. LOL. 390 pips all in all, left on the table!