- 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
- By first identifying the MARKET STATE in the CRUDE OIL market, traders were then able to determine the optimal TACTIC for the NEUTRAL market state. In a NON-TREND market state, traders should key off the CRITICAL RANGE (UP-DP) as it represents the expected trading area for the session. As the market sold off to the DP, there was a BULLISH DIVERGENCE signal at our expected level of SUPPORT (DP). This tactic allowed traders to accept the BUY DP FADE strategy and ride profits all the way up to the UP as the market maintained positive structure throughout the trade.
