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Oiltrading

Trading Strategies for Capitalizing on the Volatility of OilAs financial market traders, we are always on the lookout for trading strategies that can help us capitalize on market trends and conditions. One such strategy is to take advantage of the volatility of oil prices. Oil is a valuable commodity that is subject to significant price fluctuations. There are several reasons why oil is volatile, including limited supply, high demand, geopolitical instability, and speculation. These factors can cause the price of oil to fluctuate rapidly and often unpredictably, which can create opportunities for traders who are able to anticipate and capitalize on changes in the price of oil. One way to take advantage of the volatility of oil prices is to use a trading strategy known as "contango trading." Contango trading involves buying oil futures contracts and holding them until they mature. When the price of oil is in contango (i.e. when the futures price is higher than the spot price), traders can profit by buying the futures contracts and holding them until they mature. This allows traders to take advantage of the difference between the spot price and the futures price, and can provide an attractive return on investment if the price of oil rises as expected. Another way to take advantage of the volatility of oil prices is to use a trading strategy known as "spread trading." Spread trading involves buying and selling oil futures contracts with different expiration dates. When the price of oil is volatile, the prices of different futures contracts can diverge, creating opportunities for traders to profit by buying and selling these contracts. For example, if a trader expects the price of oil to rise in the short term but fall in the long term, they may choose to buy a short-term futures contract and sell a long-term contract. If their prediction is correct, they could profit from the difference in the prices of the two contracts. Overall, the volatility of oil prices can create opportunities for traders who are able to anticipate and capitalize on changes in the price of oil. By using strategies such as contango trading and spread trading, traders can potentially profit from the volatility of oil prices and generate attractive returns on their investments. In Depth Contango Trading - This strategy is based on the expectation that the price of oil will rise over time, and it is used by traders who want to capitalize on this expected price increase. When the price of oil is in contango, it means that the futures price is higher than the spot price. For example, if the current spot price of oil is $50 per barrel, and the futures price for oil to be delivered in six months is $55 per barrel, then the price of oil is in contango. In this situation, traders who use contango trading would buy the futures contracts and hold them until they mature, hoping to profit from the expected increase in the price of oil. The profit from contango trading is the difference between the spot price and the futures price. In the example above, a trader who buys the futures contract at $55 per barrel and holds it until it matures would make a profit of $5 per barrel if the price of oil remains at $50 per barrel. If the price of oil increases above $55 per barrel, then the trader's profit would be even greater. Contango trading is a risky strategy, as it is based on the expectation that the price of oil will rise over time. If the price of oil does not rise as expected, or if it falls, then traders who use contango trading could suffer significant losses. Additionally, the volatility of oil prices means that it can be difficult to predict the direction of price changes, which can also create risks for traders who use this strategy.
FX:USOILEducation
by JoelWarby
Brent crude bearish sentiment Commentary: Despite the optimism around the reopening of China from COVID restrictions, oil prices remain vulnerable to fears of a global economic slowdown. The EU’s price cap at $60 per barrel while OPEC+ is expected to maintain existing production targets adds towards the bearish outlook on price. Brent crude : Last weeks gains can be viewed as a “corrective” bounce off the $81 support; since price has pierced below the September 26th lows at $82.30 may serve to keep alive the bearish price sentiment; downside potential spotted near the $79.7s while upside seems limited to $89.2 in the short term (5-25 days). Not investment advice. Past performance is not indicative of future results.
SKILLING:XBRUSDShort
by Skilling
USOIL on a descendi ng channel 🦐USOIL on the 4h chart is trading inside a descending channel in a series of lower low lower high. The price tested the weekly support and moved back above the structure, testing now the upper trendline. How can i approach this scenario? I will wait for a potential break of the channel and if that will occur i will look for a nice order according to the Plancton's strategy rules, -–– Follow the Shrimp 🦐 Keep in mind. 🟣 Purple structure -> Monthly structure. 🔴 Red structure -> Weekly structure. 🔵 Blue structure -> Daily structure. 🟡 Yellow structure -> 4h structure. ⚫️ Black structure -> <4h structure. Here is the Plancton0618 technical analysis , please comment below if you have any question. The ENTRY in the market will be taken only if the condition of the Plancton0618 strategy will trigger.
TVC:USOIL
by InkyGrip
24
20 Reason for sell OIL 🔆MULTI-TIME FRAME TOP-DOWN ANALYSIS OVERVIEW☀️ 1 ✨Eagle eye: Sideways 2 📆Monthly: Bullish to corrective mode 3 📅Weekly: a clear bear trend is established with proper lower lows 4 🕛Daily: bear and filled out corrective move now just ready for the next impulse move in bearish side 😇7 Dimension analysis 🟢 analysis time frame: Daily 5: 1 Price Structure: bear 6: 2 Pattern Candle Chart: long shadow rejected at resistance 7: 3 Volume: 8: 4 Momentum UNCONVENTIONAL Rsi: Sideways to bear 9: 5 Volatility measure Bollinger bands: rejected at the middle band 10: 6 Strength ADX: just beginning strength for bears 11: 7 Sentiment ROC: ✔️ Entry Time Frame: H4 12: Entry TF Structure: sideways 13: entry move: wait yet 14: Support resistance base: upper resistence 15: FIB: nil ☑️ final comments: wait for breakout 16: 💡decision: sell 17: 🚀Entry:79.90 18: ✋Stop losel: 81.5 19: 🎯Take profit: 73.66 20: 😊Risk to reward Ratio: 1:6 🕛 Excepted Duration: 10 days
TVC:USOILShort
by Optimum369
How to profit from Crude Oil - LONG (and short) The USA is in a political battle over the price of oil with OPEC and right now they are winning, but how low can they go? Not too much lower actually, they need to start buying again to ensure their strategic reserves remain useful and not at risk of dropping below the requried levels to support the country in times of emergency. OPEC $64 - To ensure OPEC break even on oil product, they will control the market above SPR $72 - To replenish the reserves the USA is a buyer at $67 - $72 a barrel, not too far from where we are now EU $70 - The EU are in talks to ensure Russian oil cannot be sold above $70 Pin Bar $77 - We have a bin bar rejection to support the market move North again Fib 78.6% - We've rejected this level 7 times on the weekly and daily chart Target 1 - We've already tested and profited from this move upto $82 and we'll be doing that again Target 2 - Fib 61.8% at 88 will be our next target Target 3 - Fib 50% at 92 will be our final target Short - If we break down past 77, we'll be a buyer just below at the SPR support levels.
CAPITALCOM:OIL_CRUDELong
by CBMotivation
2
BIG UPDATES PART 1 (CHAPTRE 3)We're back with breaking news Expecting oil retracement to the 85$ zone before a "ready to launch phase" Big pockets on the edge and i might sound crazy but we can touch the +100$ zone in a very short time of a period. Risk of your own and i wont recommend any TP or SL in this one If you lose don't blame me if you win don't thank me As always lose to win and risk to gain. that's the moto. The full chapter: 1) Sell "Done" 2) Buy "We are Here" 3) Sell
FX:USOILLong
by UnknownUnicorn2830187
3
USOIL Weekly Forecast Analysis 28 Nov-2 Dec 2022 USOIL Weekly Forecast Analysis 28 Nov-2 Dec 2022 We can see that this week, the current implied volatility is around 6.37% , down from 6.6% of last week. According to ATR calculations, we are currently on the 85th percentile, while with OVX we are on 88th percentile. Based on this data, we can expect on average, the movement from open to close of the weekly candle to be : In case of bullish - 5.25% In case of bearish - 4.6% With the current IV calculation, we have currently 27.6% that the close of the weekly candle is going to finish either above or below the next channel: TOP: 81.5 BOT: 71.5 At the same time, taking into consideration the high/low touch calculation from the previous values, we can expect for this week: 70% chance that we are going to touch the previous low of the weekly candle of 75.5(ALREADY HIT) 30% chance that we are going to touch the previous high of the weekly candle of 82.3 Lastly from a technical analysis point of view, currently 65% of the moving averages rating, are insinuating we are in a BEARISH trend.
TVC:USOIL
by exlux
USOIL Outlook - $76.50 ZONE POTENTIAL BREAKUSOIL is now at the 76.50 zone. It dropped all the way from 128.00. Price is about to break the 76.50 zone. My target is still the 40.00 zone. Market-makers may even push it further down to trap SELLERS. Price action is king!!!! -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- CHECK OUT MY PREVIOUS ANALYSIS!
TVC:USOILShort
by SMCSmartSniper1
2
Oil Outlook 2022 🛢️With global political tensions on the rise, the expectation for crude oil price seemed to be bullish across the mainstream media. Everyone seems to think that war=high crude oil prices. This is true. However OPEC+ just said they will likely be upping production in Jan 23 so price has been plummeting. I was actually surprised that price wasn't moving higher yet before this announcement, however algobuddy was telling us on the weekly that it's still in bear mode so I have been weary of long positions on my short term charts. I try to stick with the overall weekly or monthly trend. I also keep remembering when the US president said he'd like to see price of oil closer to $72 before he stops emptying reserves, and when a US president says something like this I like to think there are enough strings to pull that he can make it happen. This seems to be working out, as price is almost down to that exact number now, especially after OPEC's announcement. I do notice a broadening formation happing on the weekly chart right now around this area. This gives me the feeling that a big slingshot move up is coming. I'll keep my head on a swivel, but until we get a weekly algobuddy bull signal I am staying on the bear side for now. IF the talk of WW3 turns more and more likely into becoming reality, then I will start to think of a move to the upside. IF weekly candle crosses and closes back above the algobuddy thick ribbon line then I'll turn bullish. It's already made a new low and peeked below the previous weeks bar and is now back above its low. This is bullish for me, however if price continues to make new lows and more production ramp announcements I will jump on shorts. Looking forward to seeing how this week candle closes. If red, then we can see more downside move. Stay solvent my friends 💪 AlgoBuddy
NYMEX:CL1!
by QuantVue
Why buying oil Oil have to scenarios on is going up to 106 $ where it will form double bottom pattern . At 75 $ which is forming now . How it fail ? Close 2 days below 75 $ Second scenario , going down as we have double top at 92 $ . Where it can reach 70 $ I believe upside worth more risk . Because it more logical and reflect the indicators as we are in over sold monthly If we cross bellow 75 $ 2 days ill be seller to 70 max 63 For daily trades i believe we have a big bounce can kill the seller soon . GOOD LUCK
TVC:USOILLong
by tornadosoul
10