WTI trade ideas
DOUBLE DEATH CROSS STRATEGY WTI CRUDE STOCKApply these SMA Indicators on your chart - 50 - 100 - 200
Step #1: Wait for the 50-day EMA to cross below the 100-day EMA. The two moving averages also need to converge with the price action.
If we get the crossover of the 50-day MA (blue line) and 100-day MA (orange line) at the same time the price is testing those moving averages, that’s the best-case situation for a trade because we can define the risk.
The rule you need to keep in mind is that when the MAs converge with the price you have to get ready for the ride because it is going to get BUMPY!
Step #2: Multiple entry strategy: Sell 1 when we close below 50-day MA and 100-day MA. Sell 2 when we break and close below 200-day MA.
Using multiple entries to improve your average entry price can be the best way to approach the death cross signal. Scaling in to a position is our preferred trading method when looking to capture large price move in a currency pair.
The fact that the price was near the death cross signal, it created a tension in the market that eventually will lead to a sharp move to the downside.
We pull the trigger on the first half of the trade once we close below the 50-day and 100-day moving averages.
If at the moment when the death cross developed we’re already trading slightly below the two moving averages, sell at the market the moment we close below.
The second half of our position is entered once we break and close below the 200-day moving average.
Note* it’s important to remember that the success of the death cross signal relays on this simple trade secret that price and the two moving averages needs to converge.
Keep it simple stupid is not just a simple aphorism, but it’s an old truth that can make the difference between losing and making money trading.
This brings us to the next important thing that we need to establish for our long-term trading strategy, which is where to place our protective stop loss.
Step #3: Hide your protective Stop Loss above 50-day MA and 100-day MA
The most important thing we need to define when trading is our risk. If you want to be a profitable trader you really need a limited risk. This is the type of death cross trades that we want to pull the trigger on.
If the price were to move back above those moving averages, we can safely assume this is yet another false trade signal. In this trade case scenario, we’re risking a little and our reward is potentially much bigger.
So, the best place to hide your protective stop loss is above the 50-day MA and 100-day MA.
Step #4: Two-step process for the take profit strategy: Mark on your chart the high of the candle when the 50-day MA crossed below 200-day EMA. Take profit when this high is broken.
Our take profit strategy might seem a little bit complex, but once we break down the steps you need to follow it will make more sense why we’ve chosen this approach.
The first thing you have to do is to remember what we said in the beginning of the article which is that when the price doesn’t converge with the two MAs this is a death cross false signal.
In our example below, we can observe this type of price action.
Now all you have to do is to mark the high of the candle when the death cross happened and take profit as soon as the high gets broken.
Note** the above was an example of a SELL trade using the death cross strategy. Use the same rules for a BUY trade – but in reverse, in which case we have the golden cross trading strategy.
Offshore Long term perpectiveI remain bullish on offshore drilling and services. They have been in long term bear slide. But they have begun to rise on much increased volume. A .236- .382 retraction seems reasonable to me long term. These levels also appear to at expected resistance levels.
Process your way.
Crab - Swing Trade ..l.. ()( - _-)() ..l..The key characteristics used to identify the Harmonic Crab pattern are as follows::
AB leg can retrace anywhere between 38.2% up to 61.8%
BC can retrace 38.2% – 88.6% of AB leg
CD is an extension of up to 161.8% of XA leg and is also an extension of 224% – 316% of the AB leg
After the crab pattern is established, traders can take their positions at or from point D (at the high or at the low of the price bar at D) targeting 61.8% and 127.2% of CD leg.
Bat & Shark PatternThe key characteristics used to identify the Harmonic Crab pattern are as follows:
AB leg can retrace anywhere between 38.2% up to 61.8%
BC can retrace 38.2% – 88.6% of AB leg
CD is an extension of up to 161.8% of XA leg and is also an extension of 224% – 316% of the AB leg
After the crab pattern is established, traders can take their positions at or from point D (at the high or at the low of the price bar at D) targeting 61.8% and 127.2% of CD leg.
The Harmonic Bat pattern has the following characteristics which can be used to identify the Bat pattern.
AB leg can retrace between 38.2% – 50% of XA leg
BC leg can retrace between 38.2% – 88.6% of AB leg
CD leg can retrace up to 88.6% of XA leg
CD leg can also be an extension of between 1.618% – 2.618% of AB leg
The chart below shows an example of the harmonic
Bearish Crab @ 4.70 w/ RSI BAMMThe key characteristics used to identify the Harmonic Crab pattern are as follows:
AB leg can retrace anywhere between 38.2% up to 61.8%
BC can retrace 38.2% – 88.6% of AB leg
CD is an extension of up to 161.8% of XA leg and is also an extension of 224% – 316% of the AB leg
After the crab pattern is established, traders can take their positions at or from point D (at the high or at the low of the price bar at D) targeting 61.8% and 127.2% of CD leg.
WTI retracement longDaily and 4HR time frames are both off over sold on the RSI. I am expecting a retracement to 3.58 unless further signals to to sell off become evident. Price reaching a low of 1.80 would be ideal for the entry long, giving the trade a 25:1 theoretical risk reward. As price has already reached 1.92, we may not see more downward pressure to achieve the ideal price.
DISCLAIMER:
This is where I practice ideas and work on my trading techniques. This is not investment advice. Please note I am only providing my own trading information for insight to my trading techniques, you should do your own due diligence and not take this information as a trade signal. Trade at your own risk.
