Iran threatens the World with Nukes and No Oil - and then drops Oil prices ?

With the Iranians and the US shaping up for a knock down UFC style soon, I decided to trade US Light Crude as volatility would be high .Today Iran dropped its oil prices to Asian customers just to peeve of the US, lol.

The above chart is shown to give context to the first trade.Oil had peaked @ 10340 and then sold off
to10160. You can see the support line drawn where the market used the previous resistance line level.
I missed all of that action and waited for it to consolidate. I entered at 10184 on my trigger signal and took heat as it retraced back down :<. It bounced off the 50MA and moved up hard and fast :>.
I haven't had such a strong move in a while and quickly moved my stop up to capture profits. I haven't traded Oil before so I wasn't sure of its nature eg going to trend up or fall back in to a sideways pattern?.
I scanned the news for the latest Iranian sabre rattling that may have sparked the markets move. Apart from a planned nuclear underground test announcement as per  www.debka.com, all was well.

As you can see I got stopped without giving it much room to retrace and give back profits. Of course it went on to make a higher high. I can't complain, as you can see it went straight back down after forming a heads and shoulders pattern. 31 Points.

The next trade was on the 2 min chart, Oil had sold off hard and I was looking for a reversal to the up side.

As you can see a perfect reverse head and shoulders pattern formed. I entered late due to the automatic buy trigger not working :<. Again the entry was tested before shooting up :>. I thought that it may have move gas in the tank (pun intended ) but the inside bars formation can be a good set up for a short if it broke the 10177 level, plus it reached a level of previous resistance . Again my stops kept some profit on the table. Looking at the trade in hind sight, I should have measured the move by the size of the reverse head and shoulders.12 points. :>

A overnight update: 13 Januray - I was too tired to trade last night and missed a golden opportunity that R2000 alerted me too today. Here is a quick chart from IG markets

This move was a pure news driven event.
SAN FRANCISCO (MarketWatch) — Crude-oil futures fell 1% to close under $100 a barrel Thursday, making a swift retreat in the final minutes of trading after a report that Europe would put off an embargo on Iranian oil imports.

Given time I will drill into the charts to see if there were any trading setups to catch the big ride down and post my findings. 

Things that make you go boom - AUDUSD Forex trade

On the 30th of November I was trading the AUDUSD around 12.30pm and things were quiet. I went long. Here you can see things weren't going anywhere.

The little black boxes indicate buy signals which I took. Then out of the blue BOOM!. Like a rocket the price went straight up. Now the news which was slow in comming out was that the central banks have decided to all be friends and lend to each other. How nice and the market went nuts. Within 2 minutes I bagged 156  points and my trading account doubled. :>

Just to note with a windfall profit in such a quick time frame I choose to take profits before the market decided to sell off. By being flat with a great profit I was ready to scalp again higher up and took a quick profit. As all good things come to an end sometime.

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How To Trade - Example Trade blow by blow, A new day 2nd trade

At around 12.10pm I entered my next trade which was a set and forget trade.

Which means I placed a contingency order either side of the trade eg a profit target and a stop loss. I had to go out to meet someone for coffee and happy for the trade to unfold without me. Upon my return the trade unfolded perfectly.

The Entry (shown as the down green bar) was too early. Where as point 3 would be a much better setup however I was impatient with the market and had to get ready to leave. I gave the trade room to move against me as I got stopped out prior to this trade by .5.

The trade was made on a 5min chart with Stop loss shown with 7points of risk. My profit target was projected on the 2min chart as the market is in a range bound pattern. Profit target = 17 points thus a good position size eg win greater than loss.

You  can see on the 5min chart how the price action flakes or faints when it hits the 50MA (thick black line)
These points are numbered and it took 4 rejections before it let loose to the profit target. 

Its very cool when I find the right time frame to trade that the market is in rhythm with, as shown on the 2min chart. If I had watch the trade I would have had the emotions as shown.

From this one needs to look for the greater time frame for setups eg 5min and then trade the lower time frame for precision.

Enjoy :>

How To Trade - Example Trade, blow by blow

 

Trade washes out as it hits Stop loss. :<
A loss of 20 points. This is how trading is , not all trades make it and one needs more winners than losers to make up for the losses. All I can do now is either wait for a new trade and valuate why the trade didn't work and what to fix for the future.

In this case entering reading the overall markets weakness and last two day sell off should have looked to trade the 2min chart for a long (up) position.As shown below

The day chart has a setup entry that is triggered if tomorrow moves up past the high of today at 4518.60 then entry will be made with the stop below the low of today.

How To Trade - Example Trade, blow by blow

THE ENTRY

My entry at 4510 was triggered using my entry rules for a intra day Swing trade
1.My rules is that if there is a white candle that closes above the double blue lines then that candle becomes my Setup Candle.
2. If the next or preceding candles break the high of that Setup candle I take the trade. It must move at least 2 points above the Setup bar.
3.A Stop loss is placed below the lowest low of the base or Swing. In this case its 20 points away. Position size I am risking 20 points. My 1st target is 4536 or 24points and second Target is 4559 or 46 points.
So I am risking on this Swing Trade 20 dollars to make 24 dollars or better.

I  will update during the day with more live snap shots of the trade.

Now I am trading an CFD called AU200 CASH.IND provided by MF Global Australia, this CFD follows the XJO more closely than  the SPI.