Warrior Trading Blog

18 Minute Crude Oil Scalp +$760 | Steve’s Futures Pulse 182


Take me out to the ballgame, take… Okay, you don’t want to hear that. Happy Friday everyone. I’m done trading for the day, and today we scored $760 in light sweet crude in 18 minute trade duration. In today’s Futures Pulse, I’m going to break down why we saw the trade, why we acted on the short side, why it was time to cover quickly and I am done for the day and off to the ballpark. Take me out to the ballgame, take me out to the crowd.

All right, you can see here, this is the $760 we scored in the light sweet crude, that September contract symbol CLU9. Let’s dive into the charts, so you can see how this trade came to life. I’ve got the 10 minute chart over here, it was at 9:12 AM Chicago time, right here on this bar that we took a short position at $55.98. Now I want you to understand why we got short right here, okay? This is a common theme in my Futures Pulse recaps, I want you to understand the why behind the trade, that’s your opportunity to grow when you can start seeing this pattern with your TAS market profile indicators.

So the reason was really simple, it’s a common setup. Volume aggregation had amassed up above. We also saw volume aggregation over here on this middle chart, the 30 up above as well. Now remember what market profile is, we’re taking volume, that you see me circling down in the bottom pane here, and we flip it sideways, okay? And when we do that, it seems like a simple big deal event, but it’s really quite profound, because what we’re able to do when we flip volume aggregated into market profiles is we now can see a relative scale of where all the volume is, and what corresponding prices all that volume occurs. That’s the big difference here, okay?

So we can distinctly see that this area that I’m circling, and this area over here, has all that volume. So we’re leveraging that as a resistance point on the trade, okay? Our TAS boxes indicator gives us these three lines that note what we call the value area, or fair auction, so we also at that time, again on this bar right here, we were down below that level and that came in at $56.05. I also liked that we were in breakdown low below that $56.12 level, which is the demand zone, or bottom of the value area there as well.

So when we saw on both the 10 and the 30 the breakdown happening below that green line demand zone, we knew it was time to side with the bears and take our bear claws out. So we did that. I had just six units on the short side this time, but we had a nice little cover on the trade as the market worked its way down lower. I covered down at 87 for 11 cents on five of the units, which means I closed out $550 the first go around, and then as the market broke about another dime lower I covered my final unit, amassing $760. We did that over about 18 minutes, like I said, and I’ll show you where those cover points were.

Here we go. $55.98. Here’s your $55.87, I’m just going to kind of draw it here, we just grabbed a snippet right here, and then down here as we saw this market move back inside the value area. So we’re basically, this is the area that I circled here that we took advantage of in the market, and albeit was a small move, it was a small amount of time risk in the market as well. And given I’m off to the ballpark, going to go behind the scenes today, I thought it was time to call it quits.

We’re going to finish in the green. We’re going to do it again when we meet back here on Monday morning. If you’re not yet a Warrior Trading Futures Warrior, I’d like to cordially invite you. Come on over and join us, you can be joining me live and see me do this commentary in real time each and every day, Monday through Friday. Enjoy your weekend everybody, until then trade well and be well. Buh-bye.

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