As this market analysis report is for educational purposes, a previous possible scenario will be discussed.
On the 8th of July 2019 a scenario in the Crude Oil market was considered where a possible new uptrend was in progress. The full analysis can be viewed at
On the 10th of July the critical resistance level at 67.612 was indeed broken and a long position could have ensued with the possible targets projected as well as the possible account protection level. It is critical to know all these levels BEFORE any position is engaged as no one knows what the market will really do. What we can know however is the risk we are willing to take as well as where we will enter, take profit and protect our account over a series of trades.
After a long position was triggered, there was some indecision in the market as indicated by the Doji Candle that formed, and then sellers overwhelmed buyers. The resulting downward pressure caused a lower bottom that broke the capital protection level at 62.726 and the long position was closed. This invalidated the original possible uptrend scenario and meant that the market is currently either in a range or might start a new downtrend. The predetermined account protection level protected our valuable trading capital and is an essential part of online trading.
Technical Analysis means studying market action using price charts to identify the next trend in its early stages as this is where the risk/reward ratio is the most favorable over a series of trades. It is critical to protect our account when the market does not act as anticipated.
The overall goal of online trading is to produce a net profit over a series of trades and even reaching possible targets are only part of effective risk management.
On the 8th of July 2019 a scenario in the Crude Oil market was considered where a possible new uptrend was in progress. The full analysis can be viewed at
On the 10th of July the critical resistance level at 67.612 was indeed broken and a long position could have ensued with the possible targets projected as well as the possible account protection level. It is critical to know all these levels BEFORE any position is engaged as no one knows what the market will really do. What we can know however is the risk we are willing to take as well as where we will enter, take profit and protect our account over a series of trades.
After a long position was triggered, there was some indecision in the market as indicated by the Doji Candle that formed, and then sellers overwhelmed buyers. The resulting downward pressure caused a lower bottom that broke the capital protection level at 62.726 and the long position was closed. This invalidated the original possible uptrend scenario and meant that the market is currently either in a range or might start a new downtrend. The predetermined account protection level protected our valuable trading capital and is an essential part of online trading.
Technical Analysis means studying market action using price charts to identify the next trend in its early stages as this is where the risk/reward ratio is the most favorable over a series of trades. It is critical to protect our account when the market does not act as anticipated.
The overall goal of online trading is to produce a net profit over a series of trades and even reaching possible targets are only part of effective risk management.