International Trading in Crude Oil makes it difficult to keep tab of development in real time.
It is widely traded and is life for emerging markets.
Much bigger players are involved as compared to domestic markets.
Since Crude Oil is traded practically 24 Hours a Day, we have sharp overnight Gaps due to moves in International Markets.
AMT Principles Remain The Same
Supply Demand Dynamics are same for any instrument which has sufficient trading volumes.
These Cycles keep repeating,
ACC – MU – DIST – MD
ACC – MU – ReACC – MU
DIST – MD – ACC – MU
DIST – MD – ReDIST – MD
Lets Get To Some Market Profile Charts For Crude Oil
Daily Candlestick Chart – The LT Context
This chart provides what are the IT and LT players are doing. The same AMT principles that are evident on Market Profile Charts are applicable to these Daily Candlestick Charts.
Daily Candlestick Chart Example
Important principles observed in this chart are Accumulation vs Distribution, Acceptance vs Rejection, Absorption vs Exhaustion.
Using these important Principles of AMT we can analyse any markets which have sufficient trading volumes.
After the sellers defended the higher refs successfully prices auctioned down, but bears gradually lost strength as they approached the bracket lows.
The principle of Effort vs Result was evident here.
After seeing the accumulation by buyers at lower levels once again the typical bracketing behavior continued and we just went sideways for 4 days. Any BO/BD from such tight consolidations wont give a directional move, unless we test the balance again first.
This was evident from the subsequent market action.
After the poor trade facilitation to the downside and the big ‘q’ formation, prices rallied. But the prices formed a big balance over several days and hence gave rise to a formation of potential ‘q’ or ‘d’ pattern.
spotting the ‘q’ and ‘d’ pattern is easy, the skill lies in finding out when the stem of the pattern is ending. Thankfully Market Profile Charts give us a way of doing that.
Intraday Market Profile Patterns
Intraday Trading is a breeze when you are using Market Profile to trade any instrument. It does take a fair amount of practice, but once you get the hang of it, nailing profitable trades becomes second nature.
Dean is a full-time trader and mentor, with experience of over 12 years. He trades using Market Profile and Order Flow Charts. Dean absolutely loves to trade.
He says “matching my wits against other traders is the most exciting game ever and I get paid to play”. He also likes sharing his learnings and mentoring committed traders.