Trading Crude Oil is getting better and better, especially when we apply Wyckoff and VSA principles. Here is a three-part look at the last full trading day of last week—Thursday–trading crude oil. We are trading the crude oil futures contract.
Trading Crude Oil-Part 1
A sell-off in the overnight market stabilized and we had a rally just prior to the open of the US session. The market held its gains and gave us a Wyckoff Spring and then light volume tests for a nice trade to the top of the trend channel.
We could have ended the day trading crude oil at this point, but there was more activity in this market.
Trading Crude Oil-Part 2
After the first hour of the US session, crude oil began trading lower. We see the tell-tale signs of supply entering and short opportunities emerge on hidden upthrusts. These setups traded to the lower end of the trend channel.
Trading Crude Oil-Part 3
For anyone still interested in trading crude oil on Thursday, we have two additional trades to the short side and two additional trades to the long side. A hidden upthrust and a top reversal market the end of weak rallies for two solid short trades. Two nice Wyckoff Springs (the first with a 2-bar bottom reversal) gave the late-day trader two high odds opportunities for long trades.
Trading crude oil off of the intraday 750-tick chart with the Weis Wave and classic Wyckoff and VSA principles is a great way to trade this market as seen by the ample opportunities on this day.