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Micro Crude Oil Futures Contracts – What do They Mean for You?

400 tick, I like crude oil. Hey, everyone. I hope you enjoy this content. Don’t forget to click that subscribe button and hit that bell to be notified of upcoming videos.

Hey everyone, Josh Martinez here with tradersagency.com and welcome to this week’s idea. Today’s date is July the 12th, 2021. Happy Monday, everybody. Behind us is light crude oil. Remember this month they are introducing a micro to light crude oil so be on the lookout for that. I believe it was introduced today, but you may want to double check with your brokers.

All right. So light crude oil, we have about a 400 tick rally opportunity, every tick’s worth about $10 here so that’s worth nearly 4,000 US dollars. Let’s talk about the basic structure. So we’re going to utilize a multi timeframe aspect on analyzing this one. The market was once inside of a consolidation range. You can see that winter, if the mark came near the top level of the mark, it would fall where if the mark came to the bottom level, the market would rally. To illustrate this, to draw it out, essentially what happened here is we had what’s called a descending pennant or basically you have this area where the market would touch the top blue level for whatever reason the market would sell off to the bottom level. And this would happen back and forth, back and forth, back and forth until we’re having what’s called a breakout. Now, normally what happens after a breakout there’s what’s called follow-through through and the market will traditionally will rally back up like so. Unless it’s a false breakout and then the market falls back down.

Right now you can see we have that consolidation range, some people call it a descending pennant, but you have support, resistance, support, resistance, support, resistance, support, resistance, and we’re breaking out. Now, according to the research, we’re going to expect light crude oil to go right around $95, give or take, which is going to be overall about 2000 more ticks away on the upward side, which is like a $20,000 buying opportunity with a full contract. But if we take a look at the smaller time, if we’re going to go all the way down to the one hour time, what we’re really looking for is looking for known levels of U-turn. These known levels of U-turn will help guide us in understanding when to trade and when to back off based upon probability. What I mean by that is this market will traditionally U-turn at on and or around the same angles and we can find those angles by using trend lines. I went ahead and I drew some trend lines on here, and you can see you have a U-turn, a U-turn, a U-turn, then we broke below it and then we used the blue line to U-turn above it, form highs and now we’re above the market we’re using the blue level U-turn to form lows.

Now, what we’re doing is number one, we understand that the longer term push should be bullish based upon the monthly timeframe, and because it should bullish based upon the monthly timeframe, we’re going to go to the one hour timeframe and look to buy low prices in the buy zone after the U-turn. Here’s a prime example of that. So what we have here is we have this market and this market hit that known level U-turn, broke the counter-trend line bullish and starting to going up. Now, normally when the market moves, the market traditionally will not move in a straight line. Very rarely will it just do that. Normally like a fundamental announcement, something has to drive it forward to do that.

Normally what you see is you see that the market will make higher highs and higher lows and higher highs and higher lows, higher highs and higher lows. When the market is dipping on the way down, that is where we say, “Okay, well, let’s look to buy the markets on the way up there,” right? So when we take a look at the one hour timeframe, you can see that we’re hitting the angle that pushes the market up, market goes up, market goes up, market goes up, market goes up, broke the counter trend line and now here comes the bullish wave. Higher highs, higher lows, higher highs, higher lows. This low should be higher than this low and the market should extend. According to our research, we’re looking for about a 400 tick bullish extension.

Now, we went ahead and we posted on trading view and we take a look at trading view, we can go to the profile and on the profile, if it lets us. Yep. So we’ll leave, so let us, bingo. You will see that we went ahead and we posted the trading idea. In this trading idea, you’re going to see a little write up, you’re going to see the counter trend line break entry, you’re going to see the potential stop, and you’re going to see the potential limits right there. We have a limit at 78.20, a stop at 70.43, and then entries that counter trend line break bullish.

You can find this by going to tradingview.com. Just looking at my name, Josh Martinez, this is actually pretty simple to do. Just go to up here at the very top at tradingview.com, go to search people, just type in Josh Martinez and you’ll see all my latest trading ideas.

Now, these ideas are pretty neat. These ideas will give you the opportunity to kind of see all the before and after of ideas throughout the week. Here’s an example. Here is the NASDAQ idea, we posted this one on June the 18th. You can see here’s the stop, here’s the entry, there’s the limit. There’s a play button over here where I can press play, 3, 2, 1, and it will show us the after. Were we right or where we wrong? You notice that here’s where we posted and that was a correct trading idea so which means that was 805 ticks and with NASDAQ, every tick’s worth about $5 and it’s worth a little over $4,000 US in the E-mini contract.

We do this quite a bit. You can see all these different ideas. They work out really well, most of them do, but we’re not perfect. Sometimes we’ll get home runs. We actually just finished a really, really big trading idea, a couple of them actually. Here is the Russell 2000. This was done on May the 18th. Notice how when the mark was at the bottom blue level, was expecting the market to U-turn, we’re expecting to go to 2352, 3, 2, 1, press play, and you can kind of see what happened. There’s the before, here’s the after. You see the market’s working sway up, right towards basically calling almost exactly to the tick.

Here’s another one. This is a home run trade. This is nearly 7,000 ticks. Again, this NASDAQ that’s worth like $35,000 US, it’s pretty big one. There’s the before, there’s the overall goal, and you can kind of see what’s happening here. You can see the market fulfilled the limit and that was a good little exit today.

Anyways, why are we showing you this? We’re showing you this because we understand that yes, this week’s idea is a lot of fun, this week’s idea, you’re learning a whole lot which we want, but you can also always check out this page.

My name is Josh Martinez with tradersagency.com. We’ll see you next week.

Hey guys, if you enjoy this video and you want to stay up to date to my weekly content go ahead, subscribe to this channel, tradersagency.com. If you want to be notified every time I post a video, go ahead and click on that bell down below. If you want even more information, don’t forget to visit my website at tradersagency.com and subscribe to my free weekly newsletter where I send out my research on market opportunities. Thank you for the opportunity, have a wonderful day.

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