Forget the latest greatest… Stick to a tried-and-true method of trading.
Adam Hewison here for MarketClub.com.
Several years ago, I did a video about learning how to trade crude oil in 90 seconds. People laughed at us, but they're not laughing now as huge profits continue to pile up in the crude oil market thanks to this tried-and-true method of trading.
When you watch the video you must realize that we have upgraded the MarketClub interface to a much higher standard. However, the concept of trading has remained the same. The same rules apply now just as they did 4 years ago.
Now that we have "Silly Season" behind us, it's time to get serious about trading
In today's video we are looking at crude oil. This market has been a disappointment to a lot of traders as has remained in a broad trading range for the past 18 months.
The current trading range will eventually be broken and the market will move in the direction of the breakout. While our long-term indicator, the monthly "Trade Triangle" continues to be positive, short-term "Trade Triangles" are indicating weakness. With a score of -60 for February crude oil, we expect that this market will be range bound in the short term.
There's no question about it, 2010 has been pretty difficult for most traders in the crude oil market. This year has produced no discernible, lasting trends in this market. The trends it has produced have lasted little more than just 3 or 4 weeks at best.
We've had a number of requests to do a video on crude oil, so here it is. This market has been largely trapped in a broad trading range with support coming in around $70/barrel and resistance around $80-85/barrel. In this new video, I show you some of the other factors that could tip this market one way or the other.