Tuesday 13th March

by 23:16 0 comments
No trades today either but certainly a missed entry. Couldn't get to grips with EU today so I spent some more time getting to know Oil. Then the following happened.

On the 5min chart below we can see yesterday's 15min high volume zone coming in from the left at the bottom. Just above this was where today's highest volume zone (at the time) printed. We saw some buying as a result of todays zone, then a push down on to yesterday's zone. Once we bounced from here, we printed a No Supply/Test type bar. I had all the info tapped into my trading account and just needed to hit the confirm button, but then I stopped. It wasn't fear, nerves or anything psychological. My strategy stopped me. I was longing into a high volume zone that could provide a bounce and further downside. This stuck with me and I didn't go with it. Turns out I should have taken it and it was later explained to me by the resident Oil trader on our forum why this was a good entry. I hope he doesn't mind me copying over his explanation, but it's better than I can explain it! Use below chart for reference.

Normally we want to see the NS or test into the trigger level (in this case the low of the zone from today) from above for a long after seeing a push into the zone and a return on NS... This case we form the SOS outside the zone and the trade entry takes us from the outside to the inside and thus gives us a great zone trade with as low an entry we could get (entry being at the low trigger or a couple of pips above)...The nice thing in this case is that while today's volume low almost printed at the volume high from yesterday it gave us a small zone from which to watch for acc or dis to form to either push up into the zone above or push down into the zone below...We found nice support at the zone below, 5min shows this very well with that increasing volume downbar that dipped below but closed on the trigger. From this effort we see buyers in the next bar and then the NS / test, the next bar is a NBP which mayu confuse a bit but then the next bar we see the strength again and the buyers step in for the push up. It is an increased volume downbar (but lower volume than the previous downbar) but what does the incraesed volume on this bar over the previous bar result in?This bar makes a HL than the previous downbar and closes higher than the previous downbnar, the best part of this bar however is that even though it dipped below the low of the NBP it could not close below, in fact it closed in the top half... this is a major SOS printing at a great spot.

Oil 5min

After not getting in on the 5min entry I was then granted with the 15min entry below which I simply wasn't quick enough for. It printed and the high was taken out before I got a chance to enter the trade. This was also a lovely entry but there was no way in hell I was going to chase it and enter at market.

Oil 15min

I'm steadily getting there with Oil, and you know what? I'm loving it!



28. Forex. Trading. Music. Beer. Food. Travel.


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