Trading the CL intraday using Wyckoff's method

[moreina]

Jan. 18
Hourly is trending and the EU open forms a bottom so we go long.

We get a strong thrust and exit without waiting for a selling wave to form. We now wait for an opportunity to go short anticipating that this will be the hourly retracement.

Price drops below the opening bottom, forms a miniature buying wave, then drops further. We move our stop to breakeven and fan our supply line.

We start to scale out at the break of the supply line but we don't exit our full position yet.

We exit our position on the breach of the last point of resistance as this is a countertrend trade. We now wait for an opportunity to enter long again with the trend.

Buyers taking the price all the way to the previous supply line. Given the nature the price action the retracement we're waiting for could take a really long while before showing itself. We decide to call it a day here.
2 trades, 2 wins, 18 tick net profit.

 

[moreina]

Jan. 19
US price action the previous day shifted the momentum to the downside. Approaching the close of the Asian session price rallies to the last point of resistance. We open a quick short here and plan to hold until the European open.

Price breaks down but rallies immediately, stopping us out. It then fails to find buyers at roughly the same area so we re-enter our short.

This gets stopped out as well and we wait for the European open to see the direction. An opening top forms on the open and we short it, but then we exit early for a loss as we let the previous losses affect our judgement, even as price breaks the previous low. A third swing forms lower and we re-enter our short.

We move our stop and price continues to drop before rallying out of nowhere and taking it out. We call it a day here as the action seems to hint towards a range and the distances aren't big enough to trade profitably. The mismanagement of the first trade and the asian session trades put us at a major loss for today.
4 trades, 4 losses, 52 net tick loss.

 

[moreina]

Jan 23
Hourly was retracing and we planned on going long on the opening bottom. The stop ended up being too far so we let it go. Price rallied, formed the opening top, and plunged below the opening bottom. It then formed a bottom at the previous bottom and we went long there. Price rallied and choked at the opening top so we scale out one contract, rallies further and breaks the retracement top. We exit here as it's time to go home.
1 Trade, 1 win, 47 net tick profit.

 

[moreina]

Jan. 30

Asian session trending down and breaks PDL. We open the session with the idea of going long on the first swing, which would form a bottom, as this should be the start of the hourly retracement.

1. Price forms the opening bottom but we can't get long as the SL is too far so we let it go.

2. The opening top happens at a previous top, which is a legitimate short, but support is close by so we let this slide as well.

3. The second swing breaches the first and forms another bottom, the third swing. We go long here. Things are a bit tense and we almost close out but price rallies and breaches the opening top. It then stalls at the next top, which is another legitimate short but our laptop is about to die, so we close off the day here.

4. Ended up taking a quick trade while dinner was being made. Price retraced the break and we entered on the first higher swing, closed when dinner was served.

5. As this is a break of the hourly trend, we expect a significant reaction as soon as we see a lower swing. We enter a short as soon as price starts to falter but exit way too early, price proceeds to drop below previous bottoms.

6. This is the inverse of the previous situation as price has dropped below a breakout point, so we now expect an attempt by buyers to claw something back so we watch for a chance to get long. The US open starts with a top, and as we're already trending down we let that go and wait for the next swing to form. We go long at the formation of the bottom and price then proceeds to rally and break the downward momentum. This is a countertrend trade so we immediately wait for the slightest hesitation to exit our long. We get a slight thrust with a sudden increase in volume and we exit... and it turns out to be the top of the rally. This is admittedly sheer dumb luck. We close out the day here.

4 trades, 4 wins, 140 tick net profit.