WTI Crude Oil Trading

hutch are you providing a service here or are you trading them good ops?

I used to trade WTI every day but these days the DJ30 and Bitcoin are my favourites so I trade WTI when not much is moving. To be profitable you need to trade 10 lots at a time to have the equivalent pip value of EURUSD but trading WTI is a lot better than trading EURUSD.

ok.

10 contracts at time.... you's a big boy.

Not at all since each pip is only $1 so 10 contracts is the same as trading EURUSD as you can see in the Infoboard indicator. Yesterday EURUSD had an ATR of 74 pips while it was 117 for WTI as you will see in the WTI chart in the next post. With a 10 day ATR of 142 trading WTI more profitable than trading EURUSD since, normally, the higher the ATR the more swing trades you can get. I just built a EURUSD Renko chart so you can see why trading EURUSD is not ideal, at least for me. The first chart has exactly the same configuration as the WTI chart and as you can see there isn't many swing to profit from. The second chart has 5 Renko bricks size instead of 10 and it's not much better. I also added the leverage indicator and as you can see the margin is $1,214.50 for a lot of EURUSD and only $45.50 for a WTI contract. So, trading 10 contracts of WTI is worth the same $10 per pip as 1 lot of EURUSD with a margin of $455 that is only 37% of the margin required for a lot of EURUSD with more trading opportunities.

WTI went up 69¢ but even the low ATR produced 4 winning trades and 1 break even trade (4th arrow).

WTI went up 47¢ today but the low ATR produced only two good trades with the first one was at the beginning of the session.

I have a very-minor S/R at 43.70, and almost certain that the price move/increase from 43.75 was just a pullback; expecting a run to 34.20/34.00 before looking out for reversal signals - another one of those never-say-never cases I guess.

Can you share more info on the following, please:
How to know what "da boys" are doing, and the "volume profile trading range" that you mentioned - (43.94 was the bottom of the vol profile trading range and 48.76 ish is the top. bottom was made on v light trading. fingers crossed. )

TIA

i'm looking at completed orders and its tattle tale signs. something of a black art in some instruments like crude.

i bought some here @ 45.95 ish

I'm only shorting crude. I use price-action at S/R lines to make decision.

they are loading up here... they are allowing it to go deeper then i expected.

for support/ resistance i use vol profile "ledges", usually off the annual profile. i'll put my version in and see how they compare with yours.

well look at that - nice inverted h&s and the target is my resistance @ 47.59

too good to be true.

we'll see.

Thanks!
I don't have my S/R lines on the chart (Onada always deletes them, I use their desktop portal).
I rate each line based on the TF where the line is visible. S/R 45.60 is strong enough - visible on 1H-TF. I will check at 45.20 (I always respect those xx.20), then range down to 44.60
I'm watching on 5minTF to see how it goes, will join if there is an indication that it goes down further - but may take a while after the drop from 46.40

use tradeview.com for delayed charting.

WTI went down 43¢ today but there were 4 good trades and 1 break even trade (third arrow).

Hi what broker do you use for trading crude oil? Im having high spreads even at the market open. Thanks

crude is a short now. close me longs.

I trade with OANDA and the spread is nearly always 3¢ as you will see in the chart below.

WTI went down 3¢ today and the very low ATR produced the worst trading day this month.

Fundamentals supports shorting crude, but a lot of people are talking about price getting to 48 - 50
@44.80 the inverted H/S you mentioned yesterday will be come clear, maybe that will start the uptrend
Todays PA show some unexplainable bullish bars - time will tell