I am a crude trader, nothing but. And I have used a
lot of indicators. Probably 30% of what is available on futures.io (formerly
BMT), and probably tested 90% of what comes stock in most trading platforms.
Before I give any advice on indicators, let me warn you, and encourage you, about what crude oil trading is.
Cons - CL is a very difficult market to trade. It is volatile, fast, pricey, can find any stop anywhere, and if you trade a small account and are learning to trade, you might as well just burn the money now.
Pros - If you will trade it sim for a few years (yes, I said years), it can be a very rewarding market. ES is what I refer to as a back and fill market, and crude is what I refer to as a
momentum market. I did not make up those terms, not sure they are the exact terminology. But it means one moves slow and back and forth a lot, and the other can take off on a whim.
ES has a daily
range of (I am guessing because it has been so long since I traded it), maybe 8-15
points? I could look it up, but whatever it is, that would be forty ticks if it were 10. Crude moves between 150-200 ticks a day. (again, don't have a chart open).
What makes CL great, is that it can move so much. What makes it very tough, and very dangerous, is that it moves so much.
That said;
1) Learn to read charts to define
support and resistance. Without a single indicator. There is no indicator in the world that can give you a better edge than knowing WHERE to trade.
2) Watch volume, pure volume with no fancy colors, on a 1 minute chart. That will a) help you learn more about #1 above, and b) tell you who is doing what at a moment of opportunity.
3) Watch
VWAP on
ETH and
RTH. I used to watch Donchian Channels, and T3
moving average set at 89-117-144, and that is decent, but not as easy to give different interpretations as VWAP is.
BUT - No indicator does anything that gives you much of a chance until you understand how to use it. The greatest golf club in the world will not make you Tiger Woods. It works the other way around. You learn to trade first, and then refine what you want to see in an indicator.
P.S.
Cons - CL is a very difficult market to trade. It is volatile, fast, pricey, can find any stop anywhere, and if you trade a small account and are learning to trade, you might as well just burn the money now.
Or better, do something fun with it.
