Crude oil

Oct 1

October first 2024. this is the second video today. the first video I talked about range boxes on the dxy and I described the problem with ranges that don't have enough vertical range. oil had arranged box with a range of about two to $3000 from top to bottom or bottom the top. you can trade that type of a range and it will be accompanied with good trade location and higher probability Behavior to take you Higher and lower when you have a range that's nearly 3000. the range of a trade on oil is likely to be a profitable trade even if you screw it up and only make $1500 instead of $2000. trading higher probability is a function of the distance between buyers and sellers when you decide on a trade location. what this means is that it's not just the stop that decides your risk, it is also a function of the range of a trade from your trade location. a I believe if you don't think like this you will miss a very important function on how you decide to take a trade. extensions are very critical to my trade decisions and the two most important extensions are the measured move and the 1.272. I am an extreme advocate for for factoring in extensions. at the end of this video I compared the difference between using ABCD patterns as opposed to using extensions and the example in this video shows a clear difference between using ABCD patterns and trading range boxes..... thing to think about and none of this is written in stone. I'm going to mention something as and aside. the markets are great markets right now because there are enough opportunities that can give you multi-$1000 trades.... however when the market finally breaks down and it's clear that there is a pervasive bearish Market as I believe there will be and I am definitely not the only one who thinks this.... what will happen for many of these markets that are so great to trade right now is that those individual markets will contract and there will be less clarity for deciding whether the Market's going higher or lower and this is potentially very treacherous times to trade the market and this is why you want to understand the concept of expansion and contraction of markets..... it's only a question of when this happens and sometimes these markets they can track can go on for months and years.