Trading into reports can be hazardous to your trading account health and often it is best to stay on the side lines and wait for the best situations to trade into. In fact often the best trading ability is demonstrated by your ability to not trade when it is the wrong time and pattern. This is where the room can help out a lot because we have very experienced traders in the room who can help with this.
Many traders reported excellent days again in the live trading room and I was able to trade a near 100% win rate today.
On the open, there was an open range below and so I was looking for shorts according to our rules with cycling. We came up into the area of the over night high and failed to tag it. This was immediately followed by and extension that took out three previous swings all in one run. That pattern looks like this:
I then looked to hop on the next high volume bar with trend with an opposing bar proceeding (see the rules page for more on this).
We got the high volume encompassing bar and I (and other members) sold it. This was my first trade of the day and it was done mostly because there was an open zone below and I was trying to get caught in a runner trade into that region.
Later I took several trades stabbing at the continuation move into the lows until it ultimately failed.
Today had both the crude inventory report and the FOMC statement so it is important to control risk tightly and go with the cycling and trend patterns following these key times.
Be sure to visit our live trading room tomorrow for advanced learning and excellent trading opportunities and how to trade crude oil. Today's range suggests there will be good potential for opportunity tomorrow.
See you there!
For today's room chart click here. Room charts are context free and do not have the benefit of the above analysis
Past Performance is not necessarily indicative of future results.