Today's MARKET STATE CRUDE OIL **NEUTRAL DIGESTION**
- The MKT has a slight negative bias in a difficult "choppy" trade. On the SELL side DP BREAKOUT strategies are valid but should expect a laborious trade. UP and UT1 FADE and REVERSAL strategies are recommended but profit should be taken at initial targets. The probability is to the downside today but is not a day to press it.
- On the BUY side avoid UP BREAKOUT strategies but rather FADE a negative reaction after a positive breakout signal at the DIR. DP REVERSAL strategies are recommended over FADE strategies as "sloppy" trading conditions are expected. Any DP FADE trades should get confirmation before executing. Position management adjustments should be anticipated for all longs as sideways trading conditions can quickly erase profits.
Today's PRICE MAP Performance for CL
Wrap Up
A big move today in CRUDE OIL that our JS Traders were able to capitalize on by using the OPTIMAL HEDGE TACTIC in a NEUTRAL DIGESTION market state. The expectation coming into the session was for a sideways trade within the Critical Range. The R Level at the UP signaled traders to look for selling opportunity below this level. When the MKT played host to a DP BREAKOUT strategy, the integrity of the NEU market state was compromised and the market began to transition into trend mode. The optimal hedge tactic in a NEU state is the markets ability to build directional structure along with the MA crossover tactic to confirm the trade. Sure enough the faster MA had crossed below the slower MA earlier in the session, confirming the sell signal. Also notice that the market found resistance at the MA "band" throughout the entire session as it continued to build - structure. The MKT eventually sold off to the DT3 before finding support and correcting back up near the DT2 to end the session.
A big move today in CRUDE OIL that our JS Traders were able to capitalize on by using the OPTIMAL HEDGE TACTIC in a NEUTRAL DIGESTION market state. The expectation coming into the session was for a sideways trade within the Critical Range. The R Level at the UP signaled traders to look for selling opportunity below this level. When the MKT played host to a DP BREAKOUT strategy, the integrity of the NEU market state was compromised and the market began to transition into trend mode. The optimal hedge tactic in a NEU state is the markets ability to build directional structure along with the MA crossover tactic to confirm the trade. Sure enough the faster MA had crossed below the slower MA earlier in the session, confirming the sell signal. Also notice that the market found resistance at the MA "band" throughout the entire session as it continued to build - structure. The MKT eventually sold off to the DT3 before finding support and correcting back up near the DT2 to end the session.
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