Warrior Trading Blog

Battle of Gold & Crude Oil +$1890 | Steve’s Futures Pulse 211

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Long 15 01 70 in this example. Stops 14 98 80 reason the stop is going there is we’re going to use all of this congestion as our support hopefully on the trade should we get a move higher. Got a master point of control level right here. That’s that yellow horizontal line that highlights the highest volume traded price on the board. The red color zone here delineates where approximately 70% of the volume has occurred and that’ll offer support when it’s down below and then these explicit levels that you see here, supply level red line, these aqua color POC or point of control lines, and then these green color demand levels. The more of those lines that we can put our stop on the opposite side of the better. So 14 98 80 is the stop, that’s $290 equivalent risk per contract, pre slippage and commission. So remember that does play a role in outcome as well.

Let’s go take a look at the Japanese yen. Nice bright to the upside here bouncing off that 60 minute plywood support. Let’s see what we look like on the 30. Nice break on the 30 I like the whole here. Remember got a nice alligator jaws set up here, right here, okay. Volume aggregation zone on the top, jaw line up above, got that master point control yellow line right there. Remember that delineates a high volume price and then down below, same thing. You got volume accumulation, high volume price right here, but in between where the big X is, this is the area where you may expect markets to move fast and vertically and a lot of space up above on the 10 as well. Good keen eye from, that was Jordan in the room sharing this particular chart.

Again we like that alligator jaws set up here closed just moments ago up above there. We’ll see if this next bar starts formulating and pushing highs up above if it does. Now when we’re looking for target zones on a trade that’s working in our favor, we want to look at these levels back here okay. And you want, if you’re like, let me give you an example. Let’s say you’re long, and this is a obviously a hypothetical exercise here. If you’re a long down here and you’re looking where can I take some profits, we want to look left of the chart and then look for areas you could scale out or take profits ahead of those areas. I call it taking the, grabbing a ticket at the meat counter, meaning you want to push your, get your limit order in there before everybody else runs for the exit on the trade okay.

So up here supplier, it comes in at 93 O five so before that might be a decent place. Markets retreating here even ahead of that 92 95 area. So interesting one to keep an eye on here. Golds pulling back inside the value area here. Second time it’s done that. New levels have appeared. Still big volatile levels here and there’s actually a new supply area even on the 10 minute chart here at 1502 so this market’s got a little, it’s got a little work to do right here. It’s got a little work to do. It’s going to give the break back to the upside here. We’re going to keep a close eye and it’s been rejected two times now since the entry into the trade. Relatively modest risk on this one, $2 and 90 cents is at $100 per dollar is $290 per contract in the full size.

And the micro by the way is one 10th the size. One 10th the size. So for every 10 cents it’s a dollar. Every full dollar instead of being worth $100 it’d be worth $10 for the micro trader.

So lets take a look at the crude long range bar here. Report came out.

Sitting right inside the value area on both the 10 and a 30 minute chart here on the crude. I’m going to zoom out just a little bit here. What this allows me to do is kind of get a helicopter view of the market to see where there may be some nice open space. I still like the short side of this goal or crude market. Still like the the bear camp here. I’m going to take a quick peak here on the 60. I’ve been referencing the 60 a bit more here as of late looking for reinforcement on the trading decisions.

Looking at that high it’s 58 30 right there, I’m also looking at the highest bar, 59 96 that puts it above the master point of control, I’m going to quick oops, quick reference against the 30 here again.

Definitely want to be above that 58 level. Oh get ready, crude oil, C-L-V nine, C-L-V nine. 57 45 short. This example, 57 45 market popped up here just moments ago, but as it was emerging down below the 57 46 level, that’s that demand level you see on the 30 right there. Stop on this one. I do want to get that above that 58 level. I also want to be above this technical higher rate here, which comes in looks like 58 O five so 58 O seven on the stop, 58 O seven on the stop. Symbol CLV nine. Going to have some volatility right out of the gates here on this one. Here we go.

Mini contract, half the risk, half the size instead of $10 a penny, $5 a penny. Pardon me.

62 cent initial risk on this one.

That’s the apocalypse prevention stop 62 cents a little bit wider on that. Remember different ways you can mitigate risk on on any strategy for that matter. It’s not exclusive to my teachings is obviously look for tighter stops, smaller lot sizing or by contract selection. Market’s pulling back up here, right towards that master point of control. Watch this right here this level’s coming in around 57 78 here. We’re pulling back inside the box here coming up to 57 65 level and we’re getting some retreat off that master point of control here as well. We’re hovering right there, it gravitates to that number. Don’t be surprised when the market does that. Market’s come to these levels all the time and then they retreat again. So it’s nothing for us to be necessarily like freaking out about. Moments ago just added on the crude as we’re pressed up near that master point of control. A little better price on this one of course, 57 63 brings the cost average up a bit.

57 54 is new cost average on the crude oil. Don’t forget if you’re in a position in your simulation or paper trades here, as you’re continuing to learn the strategy don’t forget to adjust your stop to match if you’ve added to a position like that, okay.

Very important.

Still got a good bit of congestion here on both of these time horizons above the trade and that’s encouraging. We’ll see if it stays there. This can be a volatile market.

 

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