Crude Oil: The Patient Road To Profitability





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Crude Oil: The Patient Road To Profitability

NEW UPDATE: 8/15/15

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Crude Oil: The Patient Road to Profitability

I’ve written in times past about the valuable ability to stay with a trading position. It’s really the only way to take advantage of the big annual commodity price moves.

American stock trader Jesse Livermore (1877 - 1940), circa 1935. (Photo by Topical Press Agency/Hulton Archive/Getty Images)

Jesse L. Livermore: Master Trader

Indeed, when it came to the Art of Patience, the great stock trader Jesse Livermore stated that:

“After spending many years in Wall Street and after making and losing millions of dollars, I want to tell you this: it never was my thinking that made the big money for me. It always was my sitting”.

It just takes time to acquire and accumulate the profits that the truly significant trends bring with them.

Perhaps another quote from Mr. Livermore will help to confirm this principle:

“Patience is the Key to Success, not speed. Time is a cunning speculator’s best friend if he uses it right.”

Jesse Livermore had learned the Patience Lesson after much pain and loss.

W.D. Gann also had this Patience factor as one of his crucial Rules for Trading stating: “When you make a trade, you must have the patience to wait for opportunities to get out right, or to make the profit.”

Patience in holding a ‘winning hand’.

Such has been the case with our selected Crude Oil trade where the Excalibur Method of Market Analysis gave a sound signal back on on July 1st to SELL Crude Oil at $56.94.

cl1As you can easily see on the chart, the downtrend for Crude Oil has remained in force and, remains so right up to Friday’s close shown above.

The uptrend took took several months to form and peak. Now, that we’re in a downtrend for Crude Oil, it will likely last several months as well before ending. What we’ll look for first, is a decline in the price momentum; a slowing down of the speed of the market decline.

You can detect this slowing down of price momentum with properly structured geometric angles applied to one’s price charts.

W.D. Gann used angles extensively on his charts as you can see on his Soybean chart below. 

GannbeansSepa1618x910The several purposes of the angles and their proper placement and interpretation was an ‘inner’ (and secret) level to Gann’s work.

This level of Knowledge will certainly help in bringing one’s attention to a slowing of a market’s current trend. Without this understanding though, the chart above looks confused and confusing. 

Here’s what can be discovered from a deeper understanding of the angles and their uses:

gannsoyThe green circle would be an early indicator to BUY Soybeans and the green upward sloping line confirms what happened afterwards.

After the top was put in, the top red circle shows just where one could detect EARLY that the Soybean uptrend had changed direction and was going to go lower in price. This was the first SELL signal in this market.

The second red circle shows another entry SELL point indicating still lower prices ahead.

There are, of course, other hidden secrets at work on this and Gann’s other price charts that help to refine both price objectives and timing of market turns. It would be my pleasure to convey those secrets to those who wish to raise their market understanding to a much higher level.

If you’re serious about improving your understanding and market skills, then, please contact me by e-mail about price & availability for either the Excalibur Method or the Harrison-Gann Master Course.George    [/private_GANN TRADING GROUP]

  • August 15, 2015