Anthony Speciale Stock Market Analyst

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MORE MONEY, MORE QUICKLY, MORE SAFELY.

Crude Oil Daily Confirmation Trade: A Case Study

I’ll invest my money in an array of diversified assets. But when it comes down to actually trading something, WTI is my jam!

When you’re willing to give something your absolute all, the results can be astounding. The question is, are you willing to give something your absolute all?

Most are excited by the lust, but the painstaking grind isn’t so appealing.

However, if you’re willing to push through the grind, not only is it worth it, but it’s very rewarding!

I’ve been trading WTI Light Sweet Crude Oil futures for about a decade. It’s the only thing I trade.

I’ll invest my money in an array of diversified assets. But when it comes down to actually trading something, WTI is my jam!

Now, many of you might think I must trade oil constantly since that’s the only thing I trade. But you would be completely wrong!

As I often say, my favorite position is CASH. I only want to trade when the odds are stacked in my favor… When I see the highest probability setups with the lowest risk.

In fact, I keep an outline of my trade plan on my trading screen at all times because I don’t trade very often. I want to make sure I don’t miss any steps in my confirmation.

Finding Confirmation

At the time of every contract being rolled over, I mark up my chart analysis with black, blue and teal channel structures. All structures require a 1%+ confirmation to trade.

The teal channel breaks require a daily settlement, while the blue and black channel breaks require a weekly settlement.

Once the confirmation has been completed, then we have to measure out our risk versus our reward. The reward must outweigh the risk at the entry in order to take the trade.

Let’s take a look at an actual trade for a great example…

I’m going to zoom in on the period of time which this contract was most actively traded so we can see the price action needed.

Daily Chart of Crude Oil Futures (Feb 2022) — Source: TradingView

As you can see, price is confirmed on the daily settlement of the candle with the teal arrow underneath it. That is our entry trigger.

Our risk, or stop loss, was placed just under the previous bar that had penetrated the structure that was previously acting as resistance, which is now confirmed to be a support structure.

The closest resistance was the ascending blue line above, which continued to rise as time progressed. In fact, it converged with the teal and black lines above it as well.

At this point, it was just a matter of setting up an entry at $75.75, a stop at $72.00 and an ascending target that was filled at $83.00.

This trade did what was anticipated and offered a profit of $7,250.00 per full e-mini contract traded. Not too shabby for about three weeks’ worth of exposure.

Now, this is exactly the kind of trade we look for in my premium advisory service, The Speciale Report.

We are always focused on the crude oil market, but we accommodate all styles of traders… Not just futures trades. There’s really something for everyone.

If you’d like to learn more about the opportunities the energy sector offers, please feel free to check out The Speciale Report by clicking here!

Rules to Live By

Two wrongs don’t make a right, but they make a good excuse.
Thomas Szasz

Until next time, I wish you a beautiful and blessed day!

Yours In Trading Success,

Anthony Speciale Jr.

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