Have you ever considered day trading crude oil with price action? If not, then you are missing out on one of the best trading techniques around, but more than that, you are missing out on a market that moves extremely well when it is trending. Today crude oil jumped more than $7.00 and had the fourth largest daily gain of all time in dollar amounts. Imagine catching a move like that and how much it would add to your trading account with only a single contract, not to mention if you were trading multiple contracts.
Having said this, the other side of this equation is that if you are wrong about oil, those fast and large moves can wipe out a trading account just as quickly, so you need the right tools to help get you on the right side of the market and that’s where price action trading comes in handy. Price action works in any market, and on any time frame, so it’s the only tool you should use when trading any market. Here is some additional information on today’s huge crude oil move that was posted by David Sheppard at www.theglobeandmail.com.
Oil surged on Friday in heavy trading to the fourth-biggest daily gain on record, as a deal by European leaders to shore up euro zone banks triggered frantic short-covering by funds that had been riding crude’s price collapse over the last quarter.
Despite the sharp gains, both international benchmark Brent and U.S. oil futures posted their biggest quarterly declines since the fourth quarter of 2008 due to weak demand, ample supply and economic worries.
Oil’s gains for the day came as part of a wider market rally, with the euro and world stocks rising after euro zone leaders agreed on measures to cut soaring borrowing costs in Italy and Spain and recapitalize regional banks.
Brent crude oil futures rose more than $6 (U.S.) a barrel to near $98 while U.S. crude jumped by more than $7 to settle just below $85 a barrel — the fourth-largest daily gains in dollar terms since the contracts were launched.
Crude drew further support from a strike in Norway that cut production of oil and natural gas liquids by 230,000 to 250,000 barrels per day, or up to 13 per cent of the capacity of the world’s No. 8 crude exporter.
“The NYMEX just went wild. It never looked back. Just up, up and away.” said John Troland, an independent energy adviser in Houston, referring to the New York Mercantile Exchange where benchmark U.S. crude oil futures trade.
Throughout the second quarter, hedge funds and other speculators had bet big on lower oil prices. Speculators cut their net long positions by more than half over the quarter, according to data from the U.S. Commodity Futures Trading Commission.
In addition to mounting euro zone worries, oil prices came under pressure in recent months from weaker demand and swelling global inventories as Saudi Arabia boosted output to quell concern about the drop in exports from sanction-hit Iran. You can read the rest of the original article here. You can read the rest of the original article here.
As you can see, moves like this are rare, but fast and large moves are not rare at all for crude oil futures, so if you are looking for a great tool in which to trade this fast moving behemoth of a market, then price action is your tool. If you study price action trading and begin day trading crude oil with price action strategies, you will forever change your trading for the better. If you want more information on day trading with price action, you can get that information here on our website today by following this link: http://priceactiontradingsystem.com/pats-price-action-trading-manual/.