Every Wednesday, Crude oil inventories are released in America. We all simply know the difference between previous data and actual data and whether it is bearish or bullish.....
But know one thing.... Data shows bullish... All the traders buy the crude... What will happen? upper circuit?..... Always not possible...
Data shows bearish..... All the traders sell the crude...what will happen? lower circuit?... Always not possible....
Then how to react the data? Actually Crude oil inventory data is connected with Fundamental Analysis... not with Technical Analysis...
But, Technical Trading is given importance by winning traders for crude oil trading. So here we can classify into three reaction by three types of traders...
Generally, Fundamentally if Crude oil shows high bullishness or bearishness on its data, It reverses its major trend in intraday....that means sudden up or fall by 100 to 150 points.... in normal circumstance, always it is not going up or down by such more points....
Are you an intraday player? Dont take any position on Data time... Cut your position before 8 Pm. and watch the data... and See the movement... After Release of the data... dont take position....you take a strict decision, i never trade after 8 pm in crude oil on wednesday....This will save your capital and become a winning trader longtime....
Are you a positional trader? Dont worry about Data release... be with your position which is correctly with major trend... that means ... major trend can be found from hourly chart... you know well, when the major trend changes with hourly chart... until then, you can hold your position.. no need to worry about data release.. if the data is against you, you know well, Losses are the part of the business... and if the trend changes in hourly or 30 minutes chart, you will change your position as per your strategy based on technical analysis
Are you a High Net Worth individual? They always have the good chance anytime.... if the data is negative and crude goes up... they only have the chance to sell again whenever the prices goes up and average their position... because money is always not a problem.. and they are also not worrying about technical analysis.... if the data is positive and crude goes down, they again have chance to buy at lower prices and average their position again...
Generally in normal circumstances... After data release , there will be some volatile movement after 8 Pm........ but after 8.30 Pm, it will go in the same direction most of the time... so you can predict the movement of direction after 8.30 only if you are a momentum trader...
This is my general experience with crude inventory data every week.... So i always suggest intraday players, dont engage with market and loose your capital... Save the capital for next day trading.. this is my kind suggestion.. sometimes it may give good profit... most of the time, it confuses intraday players and takes money...this is the real one.
