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Scalping Crude Oil


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Scalping Crude Oil

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  #1 (permalink)
ElSenorMosquito
Manhattan, NY
 
 
Posts: 20 since Aug 2013
Thanks: 34 given, 23 received

I'd like this to be a very specific thread focused on scalping CL.

I'll be documenting my trades here, and I welcome others to do the same if they are also scalping CL.

What shall we define scalping CL as? Trading direct price movements and/or average hold times under half an hour (not including a runner if you do that).

I'll start off with the only trade I made in today's session. My time was limited before I had a prior obligation, which was a shame, seeing how there was nice opportunity. The market will be there tomorrow though, I hope. :-)

Well, I'll get some pics up here as soon as I can get this Jing thing working...

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  #3 (permalink)
ElSenorMosquito
Manhattan, NY
 
 
Posts: 20 since Aug 2013
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Oh, I can't make an image/link post until I post some more...

I'll (boringly) walk though the trade.... Pictures are so much more fun.

Today's trade was one where orderflow did not support a breakout occurring, so I faded the move. I got long CL at 107.36 at 9:09CST. In hindsight that was a ridiculously good entry for the day, but I only scalped for +10 and +20 ticks on the two managed positions. I don't typically catch the $1 moves in crude. I try and consistently take 10 to 20 ticks from the market on trades.

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  #4 (permalink)
 vegasfoster 
las vegas
 
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Not to be the forum police, but there is a already a really popular thread on CL trading here

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  #5 (permalink)
ElSenorMosquito
Manhattan, NY
 
 
Posts: 20 since Aug 2013
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vegasfoster View Post
Not to be the forum police, but there is a already a really popular thread on CL trading here

I can't see that thread because I am not yet an Elite member.

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  #6 (permalink)
ElSenorMosquito
Manhattan, NY
 
 
Posts: 20 since Aug 2013
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Here is the pic of the trade taken today, see description above.


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  #7 (permalink)
ElSenorMosquito
Manhattan, NY
 
 
Posts: 20 since Aug 2013
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Happy Friday!

I took two scalps today in crude oil.

First trade was initiated due to the location of a counter-rotation being at a support level. Price blew through the level on a small stop hunt which I was a part of (the wrong part of!) -7 ticks on the trade.

The second scalp was simply orderflow confirming that there was interest in a breakout pushing higher. +11 and +14 on the two parts.




Not a big day today, but one in which R:R was maintained and thus came out in the black.

Have a great weekend!

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  #8 (permalink)
ElSenorMosquito
Manhattan, NY
 
 
Posts: 20 since Aug 2013
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Actually..... as I finished that last post there was a nice setup I didn't want to pass on.

A small stop hunt, lined up with the trend nicely, and buying stepped in. I simply hopped on for a ride. +10 and +30 on each half.

I put an arrow under this latest scalp (third of the day).



Turned out to be a pretty good day after all!

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  #9 (permalink)
ElSenorMosquito
Manhattan, NY
 
 
Posts: 20 since Aug 2013
Thanks: 34 given, 23 received

Taking a look at what happend on Friday, it was really hard to miss when it comes to having a profitable day. If you had any sense of what the higher structure was saying as far as looking very bullish, any momentum based entry on the long side was hard to screw up. Not every day is so easy though, and an "easy" day for one trader is a more difficult day for another given trading styles, methods, and individual personality traits.

One thing I'm seeing this weekend is that even though I have short hold times, I need to continually take a look at the slightly longer timeframes to make sure my trades are not flying in the face of what makes sense with regards to what's going on there.

The longer timeframes can 1) allow me to know when to take a full quick scalp and when it makes a whole lot of sense to let a runner do it's thing; and 2) cause me to pass on some trades that simply do not fit in with the story the longer timeframe is telling.

That's my weekend improvement; now I focus on executing that going forward.

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  #10 (permalink)
ElSenorMosquito
Manhattan, NY
 
 
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Today was a fairly difficult trading day for me in Crude, unlike a trending environment such as Friday was.

I had 4 scalps in CL for the session. Two losers (-7, -9) and two winners (+17, +10). By keeping losers small I came out on top.



I'm not sure if it's because we're nearing rollover, or because of Syria, or just in my head, but the orderflow was hard to read today and things were very mushy. Oh well, it was fun to trade today as usual. We're lucky people to get to do this.

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  #11 (permalink)
ElSenorMosquito
Manhattan, NY
 
 
Posts: 20 since Aug 2013
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I found the orderflow much more conducive to profitable scalping in crude oil today.

4 trades; 4 winners.



The most notable thing I journaled today was:

On my third trade, I allowed a quick blip to shake me out of the 2nd half of my position. I then watched it run, and (you know the story) was kicking myself for not being in still.

This error in mentality actually compounded and caused an even bigger opportunity cost.

I was very aware of the short potential off the 30 level (blue horizontal line) but I couldn't really see in the opportunity because my mind was not present and neutral.

This is the type of thing that as I continue to improve upon, will take my trading the the next echelon higher.

I hope you guys had a great morning session as well.

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  #12 (permalink)
ElSenorMosquito
Manhattan, NY
 
 
Posts: 20 since Aug 2013
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Today was profitable, but not a very good trading day for me at all. Too many trades. I tried out the (recommended idea) of trading on a very small timeframe to help fine tune entries, but the result of that was making decisions off too many small noise movements. Tomorrow will be back to normal for sure.

Here are the trades. I'm not putting arrows by them because it just becomes too cluttered. Not much to gain from looking at it anyways, but I'll post it for consistency and to document today in my trading journey.

The one thing that made me profitable today was keeping the losers quick and small, but letting the winners run a bit more and maintaining that R:R.


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  #13 (permalink)
 sandptrader 
Valdosta, GA. U.S.A
 
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9 Range Divergence......I see some Nice Trades on your Chart there.....here is what i see.
Could you possibly tell me what Indicator you are using?

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  #14 (permalink)
ElSenorMosquito
Manhattan, NY
 
 
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sandptrader View Post
9 Range Divergence......I see some Nice Trades on your Chart there.....here is what i see.
Could you possibly tell me what Indicator you are using?

It's just basic stochastics. Yes, there were some nice divergences today as you pointed out. Maybe I should pay more attention to that, as I rarely even look at it. Thank you.

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  #15 (permalink)
 sandptrader 
Valdosta, GA. U.S.A
 
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Yea.....those are Good Trades.....i base most of my Trading on the Divergence.
There are a few folks i have seen that also post Divergence in there Charts as well.
It's automatic for me to look for Divergence in a Chart after so many years of seeing it.
Well , just keep an eye for it and see what happens.

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  #16 (permalink)
shanemcdonald28
new york
 
 
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i am using stochastics to spot divergence. Is that what you use to spot divergence ?


thanks

shane

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  #17 (permalink)
ElSenorMosquito
Manhattan, NY
 
 
Posts: 20 since Aug 2013
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shanemcdonald28 View Post
i am using stochastics to spot divergence. Is that what you use to spot divergence ?


thanks

shane

Hi Shane,

Yes, that would be what I use to spot it. I would comment and say that I do not initiate positions from divergence. I may see it and pass on a trade because it seems like price is diverging and we're a bit overextended. I may also use it to chose to exit a position, again seeing as how we're overextended and some type of retracement I don't want to hold through is "due".

Cheers!

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  #18 (permalink)
ElSenorMosquito
Manhattan, NY
 
 
Posts: 20 since Aug 2013
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I'd like to share a really nice trade setup from today. I'm considering discontinuing this thread and starting a new one, because I'm not sure the title "scalping" will continue to be most fitting, as I'm considering lengthening average hold time on trades and trading off a bigger picture. @Big Mike what would you suggest? Can I change the thread title of this one, should I start a new one, or just leave it be?

Anyways, today I want to cover this excellent setup.

Let's start zoomed out to the daily timeframe. If you use daily candles or TPO's, you'll pretty much accomplish the same thing with this trade. I use TPO's personally.

Yesterday's high tagged a nPOC around 108.09. So coming into today that level has a bit of confluence. Certainly something to keep an eye on.



Now we can take a look at what I consider my higher timeframe, the 30-range chart. I had three levels marked on the 30-range chart coming into today. Marked here with these 3 red arrows.



Yesterday established an uptrend channel. I also have that marked on the above chart.

So the setup is pretty obvious. It's a long off of yesterday's high, which also lined up with the bottom of the up channel. You can see it from the 30-range chart, but I use a lower timeframe chart to fine tune the entry. Today I used a 500 tick chart. ( I change my lower timeframe chart of choice frequently)


I see two good entries here (again marked with red arrows). I'm not the type of trader that just has a level and puts a limit order in to fill me there. I simply don't trust that method. I need to see some type of confirmation that price is behaving the way I want it to around the level I'm interested in. The first entry is the first time that price came back across that level, rejecting it. the second entry was a retracement back to the level.

The exit could be at the top of the up channel (ideal), or when price reached the purplish level which is a confluence of a previous swing high from the 30-range, and the daily highs from 8/30 and 9/3 from the TPO chart. Or you could see that price traded strongly through the level, and wait for the divergence to get you out, or simply that price failed to make a new high, or trail your stop below swing lows all the way up. There are many ways to manage trades, and I strongly believe that we cannot know which is best until the trade is over. Use a method that resonates with who you are, and follow that plan.

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  #19 (permalink)
shanemcdonald28
new york
 
 
Posts: 355 since Mar 2012
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muchos gracias Senor !

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  #20 (permalink)
 pipandrun 
Krabi Thailand
 
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sandptrader View Post
Yea.....those are Good Trades.....i base most of my Trading on the Divergence.
There are a few folks i have seen that also post Divergence in there Charts as well.
It's automatic for me to look for Divergence in a Chart after so many years of seeing it.
Well , just keep an eye for it and see what happens.

Normally indicators are lagging - but these divergencies announce a change in the movement of the bars, very exciting!

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