Today's CL trade

My intention was not to trade today when I came to my desk.  And I was doing well keeping my fingers off my mouse, despite seeing several reversal signals on CL, ES and TF.  Unfortunately I did not show enough discipline and could not resist a reversal set up at a demand zone on CL in the last 15 minutes of the session.

It did work out as I hoped and I banked 31 ticks and only took 2 ticks of heat.  Here are some screenshots from today.

Paint bar indicators and contacting me

I have received another question about the paint bar indicators.  Could whoever, left the question, please include their e-mail address so I can reply that way.  That also goes to anyone leaving comment, please leave your name and e-mail address so I can respond accordingly.

If you are an elite member of BMT, you can PM me or leave a comment on my journal on BMT.  My name on BMT is mrmuggins

Regards,

Dudley

Long weekend ahead

I am not trading tomorrow as it is the annual lads day out at Christmas.  We have been doing this for over 30 years, so the lads are now a bunch of overweight middle aged, grumpy old men.  But I would not miss meeting up with my old colleagues once a year.

I will probably be in no fit state to trade on Friday.  I will be recovering from a hangover and spending most of the day in bed.  I will try and do an EOD analysis for Friday.

Anyway, I had a good day today and I have now moved on to taking more than 1 trade each day.  However, my issue is with taking a trend trade after taking a counter trend trade on the same instrument.  I do not understand why it is so difficult.  So this is something I will try and improve going forward.  I may try and force myself to take these trades.

Here are some charts from both CL and ES with comments from todays trading.  I must note that on a trending day like we had on TF and ES, the delta imbalance (divergence) tool is very good at identifying with trend supply and demand zones on the range charts.  I will use these charts more going forward.

TF Trade

I was not going to take another trade today, but started looking at the TF, and saw a very good looking supply zone created by a large move away from a delta imbalance bar.  So I was waiting for price to get back. 

However, the retrace was taking too long, and I saw a counter trend opportunity, when price had broken above limit sell orders.  So I took a counter trend trade after price retraced, ending with a RPM.  There was no heat taken once in the trade, and my target just under the supply zone for 29 ticks was hit.

The problem though, was that after the counter trend trade, I was reluctant to now take the supply trade.  I cannot understand this reluctance.  Suffice to say, the short would have worked very well with price falling over 70 ticks from the supply zone.

I have also added another screenshot which I would have taken if I had seen it, but at the time, I was in the CL trade.  It is based on the same idea as the CL trade today and the TF trade yesterday with a breakout with a delta  of 60% or greater, showing aggressive sellers in this case.  This does seem a very good entry technique, with a small stop loss if it works and a good reward to risk.

Today,s CL Trade

Although I have been taking longs over the last week due to seeing accumulation and a breakout above 96 level, I took a short today, based on seeing impulsive down moves and corrective up moves and price had remained under the daily VWAP.

I had a supply zone on my volume chart and price had retraced back up to it.  However, I now look for sell signals at supply zones (or buy signals at DZ) to enter.  The signal was a 2 bar base on the 12 range chart with a RPM breakout with a delta of 60%.  This shows that the sellers are very aggressive.  I entered with a limit order with the SL just above the entry bar.

Price moved down, but had problems with a previous swing low where I had seen limit buy orders (with the delta imbalance tool).  Once this level was broken, I moved my SL pass break even.

Price then had more resistance at a demand zone from yesterday (where I was looking for yesterday's long).  There were several reversal signals there, but as the impulsive moves were still down, and I could not lose on this trade, I left the trade to play out.  I did move my SL down to +30 later, just above a limit sell order bar.  My target of 50 ticks was eventually hit.

Here are the charts.

Paint Bar Indicators

I received a question regarding how the bars are painted.  The 2 main paint bar indicators used are the Better Volume and RPM.  My Squat bar indicator also identifies a squat bar with a diamond and paints the bar blue.

Here are a couple of charts showing how the price bars are painted by these indicators and how other indicators are used to identify certain price action instances (e.g, engulfing, delta imbalance).

I am an elite member of Big Mike Trading (BMT) forum and these indicators are available for free down load to all other Elite members.  However, the cost of membership is $100.  But this is a one off cost.  In my opinion, this is the best $100 you can spend if you are serious of trading for a living.   There is so much more than free indicators, there is also the great webinars with renowned trading educators and much more. 

EOD CL Chart analysis and missed trade

I had waited for price to reach the DZ on CL I had posted on my previous post, but I was going out and had to have a bath before then.  Anyway, after my bath, I saw that I had missed a great buy signal after price had hit the demand zone.  I have just returned home after celebrating a rare victory for Manchester United this season. So despite my inebriation, I am still happy with my reading of the charts today and my TF trade (of which I took no heat).  The first charts show the missed trade and the rest are for my EOD analysis.