A Lesson in Trading Oil
A Lesson in Trading Oil
A $100K Trade Review Lesson
If you’ve read this blog, watched the YouTube channel or are a subscriber then you’ve heard me discuss inflections.
The idea of technical analysis is suspect, at least on surface level.
Too many people “do it wrong” - don’t use context and usually just mess it up entirely. So it tends to get a bad wrap. It doesn’t bother me much because it works and has worked in my career.
Sure, there are limitations to where you can use it - you can’t really use it on stocks with low float, pumps etc.
But on stock indices and select commodities it adds to major points of reference.
The way I use it is through levels/zones and reading the high-time frames.
Those things combined create ‘areas of interest’ on the chart where price may turn.
I care about spots where price will turn dramatically - inflections.
No indicators, no trend lines, no elliot wave nonsense.
Inflections like this on oil where about $100K was cleared on a single move - BIG MOVES, INFLECTIONS.
If you watch this - you’ll be able to pick up some things.
Sure, at the end, I am SCALPING AROUND, but that’s because of TWO THINGS:
I already had a huge P&L for the day/week
The levels/area there were not BIG INFLECTIONS it was light scalp time.
But there is CONTEXT to this. Market structure and price action are pointless without context.
And I think that is where most amateur traders get it wrong.
The don’t consider the:
Time of day
Context of the market at large
High time frames
What the market did the day before
So when you combine both - price action and context you become deadly.
I hope this video above and this post helps.
You can learn more about price action & contextual trading here if you are interested.
Dan
This article is presented for informational purposes only, is an opinion, and is not intended to recommend any investment, and is not an offer to sell or the solicitation of an offer to purchase an interest in any current or future investments. Any such solicitation of an offer to purchase interest will be made by a definitive private placement memorandum or other offering documents.
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