below you can see the top edge sweep during the 09:00 candle on the M30 macro chart.
The value lines for the crack spread trade are the RBOB (orange line) and CL (black line) calendars.
We use the Heating oil calendar (blue line) as we ideally want this to be in the middle, so it can anchor the trade.
In the example below we have an established top edge as we come out of the Asian session and in to the London session.
With RBOB calendar clearly above the CL calendar, at a top edge, the only trade in town is a crack spread sell.
We can sell the 09:00 candle on the M30 macro chart.
We do $80 per contract in to the red but we do then come down to the commercial buy zone caused by the toxic candle the previous evening.
The trade ends up making $300 per contract.
With spread trades we need to trade more contracts, as one trade tends to make money whilst the other trade loses (less) money.
We do a measured move down and that is a $1,000 per contract move in 5-6 hours
