When Technicals coincide with Fundamentals you get the biggest moves. We continue to see bullish fundamentals and bullish technicals on Crude Oil so in this video I share my favorite way to trade Crude Oil. I start with a daily chart and use the 20 day moving average and Anchored VWAP. The 20 day ma helps me identify how strong the trend is. In 2022 Crude Oil has tested the 20 day multiple times, but has been unable to close below it. From there I take an anchored VWAP and take it to the recent low when Crude last tested the 20 day ma. From there I use a 3 standard deviation on the VWAP to show me where potential resistance will be on rallies. I only look for longs in this environment, no shorts at resistance. I go down to my 3 minute chart to help me with executing intraday and use two Anchored VWAP's. I anchor one VWAP from the open of new day and use a 1 standard deviation. I anchor another VWAP from the open and use a 3 standard deviation. The 1 std deviation helps me with an area to scale out of the trade. I only take longs when the 3 minute bar closes above the VWAP and I use the 1 standard deviation as my target to take off 50% or more of the position. As long as Crude Oil stays above the intraday VWAP I remain long and look to trail for a potential test of the 3 standard deviation VWAP.
Past performance is no guarantee of future results. Derivatives trading is not suitable for all investors.
Past performance is no guarantee of future results. Derivatives trading is not suitable for all investors.