We were talking about trading futures Crude Light in the Skype room yesterday.  We knew that Crude was going to retracement, we just had to wait for the pattern to complete.

Trading Futures Crude Light Example

If you were watching Crude yesterday, it was retracing down to the ATR on the 180 minute chart.  While the ADX on the 45 minute was overextended, traders needed to wait for the stopping pattern to complete.  The stopping pattern is a trend divergence followed by a hidden divergence pattern on the lows.  The trend divergence started appearing around noon but did not complete until after the market closed.  Then right before the market opening in London, the hidden divergence appeared on the lows.

The entry actually came in on the 12-minute chart.  Here is how it played:

  • Point A – Magenta peak indicating a retracement to the ATR (blue plus sign)
  • Point B – Price retraces to the ATR
  • Point C – Sellers decrease on approach to ATR
  • Point D – Stochastics shows that although price made a lower low, Stochastics did not.

Trading futures Crude Light with the TradersHelpDesk indicators provided a great entry signal for a sixty cent move.

Trading Futures Crude Light

This is the same pattern that has appeared on hogs, VALE, and the AUDUSD (Sunday night move).  It is repeatable and requires that traders have patience for the upcoming move.  These are leading indicators that readily identify when the move is coming — traders just need to wait, let everything line up, and then enter using either futures, options or binaries.