Today we will show you the setup we are waiting for on Crude Oil. Our trading philosophy is about defining things we want to see on the chart and only trade if those scenarios happened. By doing that, we know that every time we are executing a setup is a high-quality scenario worth exposing our money to.
Let's go to the conclusions:
a) Currently, the price is on a clear bullish trend (the same scenario that before).
b) After reaching a major resistance zone, we can observe a corrective situation going on (same proportions that the previous one).
c) The resolution of the previous corrective pattern was: 1- Wait for the corrective pattern to be finished (around 47 days) 2- Wait for the breakout and a subsequent smaller corrective pattern (around 7 days) 3- trade the breakout towards the next resistance zone.
d) What we are observing right now is the same sequence that we saw on the previous trend. That's the reason we are waiting exactly for that. The corrective pattern is finished. Now we want to see the breakout and a subsequent corrective pattern (around 7 days). If that happens, we will trade towards the next resistance zone.
e) On the chart, you can see a setup plotted on the chart. That's the ideal scenario we will be aiming for. Entry on the Breakout of the pattern / Stop loss below the pattern / Target on the next resistance zone.
Thanks for reading!
Let's go to the conclusions:
a) Currently, the price is on a clear bullish trend (the same scenario that before).
b) After reaching a major resistance zone, we can observe a corrective situation going on (same proportions that the previous one).
c) The resolution of the previous corrective pattern was: 1- Wait for the corrective pattern to be finished (around 47 days) 2- Wait for the breakout and a subsequent smaller corrective pattern (around 7 days) 3- trade the breakout towards the next resistance zone.
d) What we are observing right now is the same sequence that we saw on the previous trend. That's the reason we are waiting exactly for that. The corrective pattern is finished. Now we want to see the breakout and a subsequent corrective pattern (around 7 days). If that happens, we will trade towards the next resistance zone.
e) On the chart, you can see a setup plotted on the chart. That's the ideal scenario we will be aiming for. Entry on the Breakout of the pattern / Stop loss below the pattern / Target on the next resistance zone.
Thanks for reading!