Warrior Trading Blog

Crushing the Crude +$3,000 | Steve’s Futures Pulse 184

Steve_7.31

Hey, what’s up fellow traders? Happy Wednesday. It’s hump day, and see that big smile? It’s because I had a $3K day thanks to light sweet crude. Only took us a few minutes to do it, which means in today’s futures pulse, I’m going to, let you watch the action from the futures trading chat room so you can see how we took advantage of a breakdown mode trade through one of my favorite chart patterns called the Alligator Jaws setup. Well, I’m done trading for the day, which means I’m going to exchange these for these, and hit the golf course. Follow me on social media at Futures Warriors, on Twitter and Instagram, and you can see how I do on the golf course later today. Meet you back to the market soon. Enjoy the video.

I’m going to recap this for those who yet might still be just kind of logging in here. You’re tardy and have missed all the fun. That’s okay. It’s all about learning. Remember these are recurring patterns that happen time and time again. I’m gonna zoom in on this chart here. So, what we did here today, we saw this Alligator Jaws setup, so let me make this nice and big here for us. There we go. Nice and big, okay? This is one of my favorite chart patterns in Market Profile. This is revealed by the TAS Market Profile indicators. We saw early on this morning here in the crude oil that this what we call Alligator Jaws Market Profile. I call it Alligator Jaws because if I draw a little eyeball up here and some scary teeth like this right here, looks like kind of the side profile of an alligator, right? Okay.

So, the way we make money on this is the same way you make money on the way up. The market moves fast and vertically through these zones of low volume. How do you know where the low volume zones are? Well, what we’ve done here in Market Profile is take this way down at the bottom. That’s volume way down at bottom of my screen, and what Market Profile does the TAS way as we flip it sideways and we add some colors too so you can visually digest it better, but the red zone right here is what’s called the Value Area. That’s where nearly 70%, 68.3% to be exact, of the activity is occurring. And these are important areas to be aware of because what markets do when they’re in those zones is they go sideways. Look, when we get up here, we start going sideways.

But when they move away from these zones, in this case, that big ride higher, we saw this yesterday. But over here today we saw it going to the downside. We saw that the market was starting to set up for this break to the downside, so we initiated, I had 12 units 58.44 right here. And then as the market started to penetrate lower, we got the break we were looking for, I covered nine right here on this bar at what was this 58, nine was at 58.20, which is right there. I covered.,

So I took 240 a contract times nine, remember? Then I covered two more at 14, which is right where I just drew that line right there. And then I trailed my stop down, my 40 cent stop. I trailed down very aggressively all the way down to 42 because it locked in a worst case scenario, I had no risk left on the trade at that point. And, you know when the market is here right now, I’m basically knocking on the door of $3,000 right now. I’m almost there. I’m going to cover at 58.20 that final unit. Why you say 58.20? I’m going to tell you, here we go.

58.20 on that final unit. Bingo, I’m out. I’m out. And why, you say what’s the big deal about 58.20? I’m going to tell you, to be honest with you, totally nothing, except $3,000 nice round milestone, $3,000 for the day. 12 by 12 in the crude oil, and I got my life stop. In fact, you might call this my golf stop. It means it’s time for me to go enjoy my day, go play some golf. You’ll see this Hawaiian shirt, if you follow me on Instagram, Futures Warriors is my handle. You could follow me on Twitter and Instagram, and you’ll see if I do any better on the golf course. I don’t think I’m going to do $3,000 better on the golf course. My friends won’t pay me that much.

Hey guys, thanks for learning with me here today. Alligator Jaws was our key to success today. Remember, this chart pattern emerges on any market. Literally, virtually any market stocks, commodities, ETFs, 4X, in any timeframe. You could see this pattern on a three-minute chart, a 15-minute chart, a daily chart. Does not matter. It really doesn’t. Let me show you. In fact, let me show you a daily chart, big picture stuff, just so you can see how the the analytics adapt and look at the signal: breakdown, breakout, breakdown. This is totally different timeframe. This is daily chart. Big picture stuff.

You guys are doing great. Look forward to catching up with you. You know when, tomorrow. Until then, trade well and be well. Bye-bye.

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