Crude Oil – Spotting a Reversal

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Crude Oil – Spotting a Reversal

Crude Oil futures are traded on the NYMEX Exchange and the pit opens at 9:00 am eastern time, and trades until 2:30 pm. The last half hour and the first half hour are where the gains.  Mondays are typically slow low volume trading in Crude oil, just like Fridays. So I like to trade the first Tour and last hour to catch the major moves of the day. And I like to watch time in sales to look for Block Trades. As it’s the volume that moves the markets.  To set up time and sales in NinjaTrader just go to Control Center select a New tab, then select Time and Sales in next box. Then right-click on Time and Sales box and select instruments. And look for the future contract you wish to watch and trade or select the crude oil.

So in watching you see the labels Block and 142 is the share size, blocks are usually over 60 shares. Then when block trades go off, other traders follow, and you will see 21, 45, 36 share size go across the screen. That’s the volume that moves the market when you see share size of 1, 4, 2, 5 and more ones, that means market really going nowhere. So you start seeing blocks go across with 80, 150, 380, 250 blocks moving across the screen.  So this usually means major move coming, so instead of trading 2 contracts, I go with 5.  But this involves more risk, so you should trade the amount of contracts you are comfortable trading. And up my goal, and if you look at the chart below that is what happen. Had the AutoTrader running, it got long 5 contracts right before the close and up we go $1400 in a few minutes work.  The best thing is these patterns repeat each day, so return the following day and trade Crude Oil and repeat the same steps. Then your on the way to being a more successful trader. For more info on our, AutoTrader go to www.trading123.net/autotrader/