Crude oil futures trading indicators

Expert Charts, Trading Tips and Technical Analysis from INO. February 21, by Kenny. Today I'd like to welcome Markus Heitkoetter from Rockwelltrading.

Markus' article below dives into what most traders just don't get. Enjoy the article, comment below, and visit Rockwelltrading. Are you able to make trading second decisions when there is an opportunity in the market? This strategy is a trend following strategy that identifies entries indicators trending markets. Although this strategy should work in any market, as a day trader I prefer to trade the futures markets.

My markets of choice are:. The Simple Strategy is based on 2 popular indicators: Using MACD, I rely on the following standard settings to identify the trend of the market:. MACD is a very powerful indicator. To confirm strong trends in a market, I look for the following conditions:. Trading helps us identify the direction of the market, but our actual entry point is going to be based on Bollinger Bands.

The Simple Strategy uses the following Bollinger Band settings:. When price tags an upper or lower Bollinger Band, we usually see a continuation of a trend. Using MACD to identify the direction of the market, we look for entries when price is tagging or pushing through a Bollinger Band. This gives us the following entry rules:. With stop orders at the value of the Bollinger Indicators we will ONLY be triggered if price pushes through the Bollinger Band.

Now that we have our entry rules down, we need to know when to get out of a trade. Our Simple Strategy uses volatility-based exits by keeping track of the Average Daily Range. Our goal is to accommodate different market conditions by using stop losses and profit targets that adjust to the ranges of the market we are trading. The Average Daily Range ADR is simple to calculate. To calculate ADR on your own, find the average range difference between session high and session low over the last 7 days total range for 7 days divided by 7.

Once we have the ADR we can calculate our stop loss and profit target. Although there will be times when the market continues to trend, I personally always use set exits so I can take profits before the market goes against me. In addition to an ADR stop loss and profit target, I want to get out of a trade when the market is no longer trending. An easy way to determine when the market is no longer trending is to go back to the MACD indicator.

The Simple Strategy can be traded on any intraday timeframe. Instead I use range bars. The Simple Strategy is an easy strategy to understand and execute. Once you know the basics, consider adjustments depending on your trading personality and experience; like scaling futures and out, using trailing stops, and by using Pivot Points for support and resistance.

Guest Bloggers Tagged With: Average Daily Range ADRbollinger bandse-minihybrid strategyMACDMarkus Heitkoettertrend-fading strategytrend-following strategywww. January oil, at 2: It's amazing how one speaker can fool complete tribes. The most basic idea of tech analysis, a trend line already fails to make sense! Plot a trendline in a 2min, a 15min and a 60min barchart Lines wihtin lines within lines LMAO!! Place the same bollinger bands in a 10min bar chart and a range bar chart.

I'm not even talking about different time frames or break out ranges, but they already give you a complete different view!!

Besides that, technical indicators tell you something about price development in the PAST!! If I had known that 5mins ago the market had gone up I would have entered long" Nevertheless it seems to be common practice for the blogger himself to fool people as I have experienced myself.

I've been with rockwell for 12 months. Search youtube -rockwell trading - and I'm sure that within the first ten results you'll find a live recording of me posting the truth in their NOT live trading support room. Underneath the vdo is a link to an article that describes my twelve month experience with them. November 21, at You are performing a fantastic service to your trading by opening up the comments area, it's a sensible way to communicate with them.

There are numerous resources here and we appreciate you being so kind to publish them. August 29, at March 4, at 4: Hi Marcus, Thanks for posting an article with simple and elegant system. How looked like back tests of this strategy on ES and YM? What range for range bars are you using or timeframe in case of time based graphs?

So that you can increase the crude that it is trend continuation situation versus trend reversal situation. Bottom line - I really appreciate that you brought up the idea to use Bollie as continuation signal. I never looked at them crude that though I noticed that heavily trending equities can run on Bollie edge for number of days. Thanks a lot in advance, Jiri. February 25, at 4: Thanks Justin much appreciated.

I too am oil rookie and have been looking at 15,5 and 1 minute charts waiting for all to confirm before entering. Just wasn't sure if this was correct. February 25, at 3: I actually have a good answer to this! I'm a rookie but I obsessed with learning timing and here's what I found. The idea is to follow the trend trend is your friendso you want to pick 2 timeframes, 3 at the most and make sure there is enough of a time between the two to get the bigger picture before jumping into a trade.

Anyone who trades off one chart alone is doomed to fail. But if you know the general direction, you can use a shorter time frame to time your entry. Say you use the 1 hour, 4 hours and 1 day timeframe. You would first want to look at the daily to see the trend or use the trade triangles if you're a MarketClub member and then use either the 4 hour or 1 hour chart to find a good entry point.

February 24, at 5: One thing that confuses me is the indicators and time frames. If I look at the MACD over a 15 minute chart it may be below the zero line and below the trigger line but when looking at a 5 or 1 minute chart I find the opposite.

How does one account for this? Do you only take action when you have the market crude in your direction on the 1,5 and 15 minute charts or how do you go about it? February 24, at 3: You mention about and uptrend if the MACD is above its signal line and the zero line.

And a downtrend if the MACD is below the signal line and below the zero line. Now my question futures that 3 tabs that are on the bottom right side of the MACD chart I am using ninja trader Thank You Bill. February 24, at From what I have learned, all indicators adjust to the selected timeframe. So the reading will be different but equally relevant to you in your short-term trading as it would be if you used a daily timeframe. February 24, at 2: I am new to the MACD indicator I am been following it for about 2 weeks now but my question.

I am trying to understand what color is what? The information is very helpful. February 24, at 1: Thank you so much for these great tips!!! I use MACD myself for timing entry and exit points for trades - I also use Stochastics, RSI, and Keltner channels rather than Bollinger bands. I've found Keltner channels to work better for entry and exit points. I would love though to hear your comments on futures Keltner channels - what you think of them, if you ever use them, and if not, why you prefer Bollinger bands over the channels.

February 23, at 5: Thanks for the article. Tell me does this strategy work in Forex trading that you've found? February 23, at 7: Although I prefer to trade futures, and trade Euro FX and Pound FX futures contracts instead of Forex, I've had quite a few Forex traders use these concepts with success. I'd stick to the main pairs but you'll probably find the transition to Forex pretty seamless.

February 23, at Could someone recommend a broker suitable for day trading? Mine is making changes which make futures day trading more and more challenging February 23, at 1: I'm curious to see what 'hooks' come along with the presentation Looking forward to the information. An educator with a hook?

We know that not all traders are alike and we use our webinars to introduce ideas and methods that might help traders that are struggling, or just looking for new trading ideas to incorporate into their trading plan. In this upcoming webinar we will share strategies we use at Rockwell Trading for day trading. You can take these strategies and see if they work for you and your trading style For these traders we usually offer indicators webinar special on related products.

And vise vera for a downtrend? Above query extracted from comment by Justin earlier. I would like also to know the answer. Let's take the Bollinger Band concept one step further and then answer your question Bollinger Bands are a visual representation of market volatility.

When markets are volatile, bands are wide and far apart. When markets are less volatile, bands are narrow and close together. Many traders will attempt to "fade" Bollinger Bands by selling the upper band and buying the lower band.

This might work well in sideways markets, but it can be a painful experience in trending markets. The Simple Strategy is a trend FOLLOWING strategy so the key is to use the strategy in a trending market.

This is why we use MACD to determine the trend and use orders that are triggered WHEN a band is hit a market order could be used if a bar completes outside of the band. If trading look at a chart with Bollinger Bands you'll typically find that when price tags oil pushes through the Bollinger Band, this is a continuation of the trend, especially when confirmed by MACD. This is why we want to enter futures the bands with a stop order triggered when hitand avoid entries if the market doesn't push through the band no fill if price is not hit.

So to answer your question I would place a buy stop order at the Upper Band when MACD is confiming an uptrend, or a sell stop order at the Lower Band when MACD is confirming trading uptrend.

I will adjust orders if we are still oil a trend but the upper or lower band value has trading, or cancel orders if we no longer have a trending market. February 22, at 9: This is very informative - a high quality stuff. I very much appreciate and found helpful to grow my learning to trade.

February 23, at 2: Yeah, ATR seems like a nice way to manage these positions. I'd appreciate any feedback you have regarding the use of ATR. The ATR Average TRUE Range is a slightly more complex calculation that is meant to account for gaps and possible limit moves in commodities.

I've found that the ADR Average DAILY Range is easier to calculate and more effective for the way I trade electronic markets. February 22, at 3: This is just what Futures have been looking for. I am looking forward to your Webinar. February 22, at I use Etrade and when using the MACD it does not allow us to see the 'time' of oil moving averages. The settings allow us to change the settings. Standard settings on Etrade on the MACD are slow smoothing 0.

Can someone share what these settings need to be to get the moving averages as suggested. February 22, at 8: Thank-you Adam for Mark's Guest Blog. It is very informative and shows the quality of your own "Market Club" indicators. I am not a subsciber but soon will be.

Thank you for your integrity, it shows even through your guests. A little knowledge is a dangerous thing, especially when it is used by the uninformed! February 22, at 2: I understand stop loss and limit orders but I'm not sure what you mean by this. With regard to timing, if we are in an uptrend, are you saying we buy enter a long position when the price is near the upper or lower Bollinger Band? A stop order is often used as a STOP LOSS to exit a trade for protection, but it can also be used as an ENTRY order.

Think of it this way, if you are in a trade and you want to use a stop order for protection, you place a stop order crude a specified price.

When this price is hit, your stop order simply becomes a market order to close your indicators. So although a stop order is often used to close a trade, it is just an order that gets "triggered" at a specified price, turning into a market order once triggered. If you are not in a position you can still use a stop order, and it will become a market order once your price has been hit. This market order will now get you IN to a trade. So if you place a BUY STOP order ABOVE the current market price, it will be triggered and become a market order if the market moves higher.

If the market does not move high enough to trigger your stop price, you will not get into the trade. February 22, at 7: One last question, given your experience with this approach, do you think setting stop-loss and limits using Average True Crude could also work? February 22, at 1: Excuse my ignorance firstly.

Thanks for the post, very informative. I understand indicators mentioned but am unsure as to what "range bars" are and how one would implement such a strategy using said "range bars" Thanks. Range Bars are a great way to incorporate volatility into your bars as a day trader. With a range bar, a new bar begins AFTER a "specified" range has been traded.

It's a fascinating concept and if it's new to you, I'd highly encourage you to attend our webinar since it's sometimes easier to see hands on examples. How can this be understood clearly if the 9 MACD is the signal line?

The key is to watch MACD, the 9EMA of MACD, and the zeroline. If you are watching MACD, look for MACD to cross above the 9 MACD EMA, and look for the MACD line to be above the zero-line for a possible LONG signal.

The opposite would be true for a short signal. Does this make sense? February 22, at 4: Pulse Markets Futures Stocks Forex World Indices Metals Exchanges Charts Symbol List Extremes Portfolio News Headline Trading Commentary MarketClub Join Now Top Stocks Top ETFs Top Penny Stocks Top Forex Trend Analysis Videos Market Crude Email Services Blog Free.

Saturday Jul 1st, 4: Comments Frits Altenburg says January 13, at 2: Quite a simple strategy. Bollinger bonds is an underestimated or less used tool by many traders. Here's a few examples. Hi Markus, Thank you so much for these great tips!!! Will google it and take a look. Hi Doctor Stock, An educator with a hook? Hi Al, Let's take the Futures Band concept one step further and then answer your question Hi MarKus This is very informative - a high quality stuff.

Could you please tell me wether ADR you refer is the ATR? Hi Arvind, The ATR Average TRUE Range is a slightly more complex calculation that is meant to account for gaps and possible limit moves in commodities.

I'll give it a try. Futures for the advice. Found myself in a similar situation! Great article, thank you for the advice! I'm a little confused with one thing though. When its time to determine our entry and you say Hi Justin, A stop order is often used as a STOP LOSS to exit a trade for protection, but it can also be used as an ENTRY order.

The same goes for a move lower. Yes, that clears it up. Thanks for answering my question. If so, using your strategy for forex, do you have a suggested timeframe setting for the ATR? Excellent information to combine with the triangles. Using MACD, I rely on the following standard settings to identify the trend of the market: To confirm strong trends in a market, I look for the following conditions: Hi Foxy, The key is to watch MACD, the 9EMA of MACD, and the zeroline.

The MACD is the blue line and the signal line is red. Trackbacks A Simple Strategy for Day Trading says: Recent Posts Wrapping Crude The Second Quarter Of Should We Believe The 'Transitory' Story? Why ETF's Close And How To Avoid Buying One That May Close Mexico Legalizes Medical Cannabis - Here's How Oil Can Profit Global Seasonal Oil Stock Draw In Jeopardy. Trader Comments Alan on Why ETF's Close And How To Avoid Buying One That May Close mike psaledakis on Why ETF's Close And How To Avoid Buying One That May Close mark dachnowski on Mexico Legalizes Medical Cannabis - Here's How You Can Profit Neal on Mexico Legalizes Medical Cannabis - Here's How You Oil Profit Paul Vanderplas on Mexico Legalizes Medical Cannabis - Here's How You Can Profit.

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