5/13/2008

Crude Oil, New Day, New High

The 34 tick range bar chart did another nice job of identifying the trending periods and the flat periods in the crude oil session today.

As we have stated before identifying the trending periods is not that difficult for most trading systems.

Identifying when not to trade is usually the harder call, and the most important call.

If you were only looking at the 13 tick chart you would have had many more trades and, I would suggest, far less profit.

The 2 lines on the 34 tick chart show when the trend started and when we can start looking for entries on the 13 tick range bar chart.

We wound up the day with 3 full stops, 1 break even, and 2 winning trades.

The key to success today and everyday is letting the winners run. We had one R12 winner and the other came back on us for a R1 win.

34 tick range bar chart (click on chart to view)

13 tick range bar chart

13 tick range bar chart

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