All right, good day traders. So I had a couple of members write in about using the divergence indicator or DD pro indicator on a tick chart for crude futures asking about my crude strategy on crude futures. Now this is a 233 Tick chart works on any markets. If you look at The s&p Nasdaq bonds, Euro Yen, any market that can move as well as any time frames, you want to flip to a two minute at 610, tick 1510 minute, hourly and so on, it will work just as fine, we basically use the same principles methodology. So here is a crude oil chart crude futures fed pre futures for January 13 2022, on a 233 Tick chart, and I’ll just go through and show you all the opportunities you could have had. Now this bottom window pane here has a divergence indicator, the DD pro indicator, you can see the divergence buy and sell signals as I move through the day. Now, one thing that we’d like to add is one levels we’d like to trade in or around levels, as well as trend line breaks. So all we do is play simple trendline analysis. And we can hop on board. Now we have a an aggressive mode and a conservative mode, the Aggressive Mode will simply just take the second bar after the trend line break, and then take that trade to the downside after we see the divergence sell signal. The other conservative method is to wait for the slower EMAS across the five and 21. So just walk here with through with me we’re about it’s about 7:30am Central. And you can see the sell signals. All for Nick, very nice scalp trades, you could also take the initial break of the trendline. So here we have 80 to 25 down to eight to 16. And then here we have a new divergence sell signals coming in, we have a trend line break, taking the sell and an x bar open takes us down from 80 to 50 down to 80 to 35. Here we are good we have a bearish divergence sell signal we took the next bar is short at 80 to 75. That runs down to 80 to 55. Here we get another sell signal into structure. Here’s that trend line break followed by the second bar close followed by the 521 crossings. So that takes us down from about 65 etc. This was a nice little runner trailing the 21 Ema down to 16. Here we started getting some buy signals, we get a buy signal on this trend line break takes us from about 25 up to 40. So that’s 15 cents $150 A contract, we don’t get anything here for a while we start to get some cells we did we have trendline break fall by the next bar up so that is a no trade. Here, we start a nice little climb up here from 80 to 10. All the way up to 8275. We’re getting vertical, we can draw a trend line, we have a bearish sell signal here at 1045. Finally breaks we get a couple bars on the other side of that trend line that takes it back down from 72 down to 80 to 10. Now we start to get a we get a new divergence buy signal here at 1150. So you see all this action here before lunchtime, we get the break above the trend line followed by another bar at 222. At 244 20 cents. Here we go again, we get a another divergence by signal right here. This one is nice. This one you can see is a lot higher than this one trend line break followed by a nother bar positive 8220 up to 8240. If we get a sell signal coming in right here, we get a sell signal coming in right here.
So here is trend line break, followed by another bar below that trend line goes from 80 to 40 runs down to the next level at 80 to 10 and continues lower starting to get by signals at the in the last hour or two of the day. Actually at 130 Central, we see we’ve got a sharp trend down from at 230 all the way down to at 140. So by 90 cents there. And none of these are good buys right now. And then the session is closed for the day. So this is just one market folks. You could take a look at other markets like I said Japanese yen provided a couple of opportunities here at the cash open a 30 a nice short again, just simple trend line analysis right here. After we get that divergence.
Before we get to that after we get that divergence sell signal, sell signal
Break in in trades lower. And then we see we’re starting to get sell signals here another sell signal here, finally break towards around lunchtime, from looks like 8287 70 down to 8764. Now the s&p will provide many, many signals. And it’s very fast movie. So you’ve got to be quick, you want to make sure you have a good trading execution platform if you’re trading something like the s&p or NASDAQ, but you could see several signal several examples. You can literally be done in the first hour to buy lunch, trade the last hour or two depending on your availability. There’s plenty of setups, plenty of markets. So I suggest you take a look. If you have any questions, shoot me an email
Technical damage done
A lot of technical damage done today across the board….however these types of moves can set up some absolutely beautiful trade ideas for the rest