Crude broke a year long up trend line earlier this month. It has now tested the bottom of the up trend line several times and looks ripe for drop.
Take your loss on a daily candle close back above the trend line .
Target the three indicated levels. You can even hold a portion of the trade for the June 2017 low.
Follow your stops as the trade moves in your direction.
Be sure to size your trade according to your risk parameters. NEVER BET THE FARM! No trade is guaranteed 100% to work. You NEVER know what the market will do. Your first job is to protect your trading account.
Comment
⋅
Well, the retest of the broken down tl is a typical signal to go short. But in the instructions, I said to close for a loss on a close back above the tl. Therefore I would not short if it closes above. However, that trade ide a was before price moved back above the tl. If price is above the tl right now, 2 hours before close, I would just delete the idea.
@Tradingstrategyguides Why do you think it'll drop? It crawled under the trendline and now broke it. If it closes above - why short?!
Tradingstrategyguides
⋅
@kiero, Well, the retest of the broken down tl is a typical signal to go short. But in the instructions, I said to close for a loss on a close back above the tl. Therefore I would not short if it closes above. However, that trade ide a was before price moved back above the tl.
If price is above the tl right now, 2 hours before close, I would just delete the idea.
We believe this break out is bullish and only bullish:
Tradingstrategyguides
⋅
@InvestingScope, Great place to go short on 4H if Trend line breaks out
djmitchb
⋅
there was a head and shoulders hourly forming over the last couple of weeks. It should continue to 72 and above I imagine. Look at the strength of this uptrend
Why do you think it'll drop? It crawled under the trendline and now broke it. If it closes above - why short?!