Hi, my name
is Dan, I own a construction company and I trade oil. On this site I will share
with you my trade ideas and results. Hope you will find it helpful. If you have
any question, contact me!
WTI oil is
rising since October 2011. It is a strong move up – almost 35 dollars. I use a
simple trend following system to trade oil prices. But first and most important
I check the higher time frames. On monthly wti oil chart you can see that price
is breaking through falling resistance line. This still may end as a false
breakout, so this is something I am aware of.
I make my
trading decisions based on signals from lower time frames. My favorite time
frames are daily and 4hour. I use mostly rainbow charts or GMMA charts.
Sometimes when there is a correction, I use Fibonacci retracement lines,
because it works just great. I have to learn more about trading with Fibonacci, but
I think this will be a good match – my trading system with Fibonacci numbers. I
have to work more on that, but I will write about it!
Right now
you can see on daily chart that the rainbow is positive and price is moving
mostly above it. I am still long on oil,
but I think that 115$ may be a strong resistance, but first price has to get
there!
Any break
below the ribbon will be a bad sign. My stop loss order is set earlier so I can
secure some profit.
In my
opinion, rise in oil price will go in pair with rise in stock market. I am also
following situation at DowJones, but I do not trade stocks. Stocks are now below the high from 2011, so with successful break above that line I think oil prices
will go up much more. That is all for now, I will try to update this blog in
the very near future!
