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Oil Trading
#1
It has come to my realization many times that I learn things better when I force my mind to put thoughts into the written word. I have thought about starting an oil thread for quite a while but never did. So here were go.My hope is that this will be a good place for those that trade oil to exchange thoughts and ideas about historical analysis, tomorrow’s expectations, news events,etc. Brownsfan has a great post here which goes through some of the basic facts about trading oil but I’ll do a quick version to help the thread stand on its own.
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#2
The CL contract rolls each month. I keep a quotes screen up that has the current month and the next 2 months in advance with the total volume info listed so that when the next month’s contract starts trading with higher volume than the current month, I rollover. Here is the month lettering for rollover:
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#3
(05-01-2019, 12:30 PM)examplemallet Wrote: The CL contract rolls each month. I keep a quotes screen up that has the current month and the next 2 months in advance with the total volume info listed so that when the next month’s contract starts trading with higher volume than the current month, I rollover. Here is the month lettering for rollover:

Each week The Energy Information Administration (EIA) provides weekly information on petroleum inventories in the U.S., whether produced here or abroad. It normally comes out every Wednesday at 10:30 EST but there are several times during the year when it is moved to another day due to holidays and such. Do not hold trades through this or execute trades into this report until you have experience. Historically, price volatility is more narrow from pit open to the time of this report so I make my profit targets very small if I am going to trade at all on Wednesday morning.
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#4
We were at this same level on Wednesday last week when oil came out and we got a huge up and down move. The pink area noted below can be pretty choppy especially on a Wednesday before inventory so I might sit out the trades until inventory comes out. We'll see how the price action looks.
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#5
(05-01-2019, 12:32 PM)chimpledfoothill Wrote: We were at this same level on Wednesday last week when oil came out and we got a huge up and down move. The pink area noted below can be pretty choppy especially on a Wednesday before inventory so I might sit out the trades until inventory comes out. We'll see how the price action looks.

The K contract is getting a lot of volume. Almost time to rollover. I'm glad price gapped up out of that chop area to start the morning. I'm more inclined to try a few trades before inventory.
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#6
Trading these tight ranges can be difficult, so tread cautiously when you see the volume being split between contracts. Oil rolls monthly and since it's not as big a market as say the ES, when 50% are trading 1 contract and 50% the other, it can be difficult to get sustaining moves IMO.
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#7
Lucrotrade works with none commerce fees, that might be a pleasant advantage over many various platforms and makes commerce on the platform even plenty of pleasant.
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