O put in a double bottom today. This is usually a highly reliable bullish pattern, but O is in a very steep downtrend on longer timeframes, so this might be an exception.
Instead of trading the short-term pattern, I hope that it asserts itself, leading to a better entry for a short position. If O were to reach T2 at 54.93, it could be expected to close the opening gap from last Friday (2023-09-15) at 55.05. In that range I would pick my short entry.
TL;DR: No trade for now, but a recovery towards the 54s would bring up a short entry for me.
Instead of trading the short-term pattern, I hope that it asserts itself, leading to a better entry for a short position. If O were to reach T2 at 54.93, it could be expected to close the opening gap from last Friday (2023-09-15) at 55.05. In that range I would pick my short entry.
TL;DR: No trade for now, but a recovery towards the 54s would bring up a short entry for me.
Comment:
The double bottom got within a few cents of SL at 53.68. On the 5 minute chart, O's double bottoms have a 71% chance of reaching T1 and a profit factor of almost 15. In only 4 of 14 previous occurrences has the stop loss been hit. Nevertheless, it looks like this time might be different. If so, I'll wait for a different setup on O.
Comment:
I made my previous update a comment. D-oh! Regardless, the double bottom is now officially busted, as
O
just gapped right below that bottom level. As frustrating as that is, I won't chase this short opportunity.
O
just gapped right below that bottom level. As frustrating as that is, I won't chase this short opportunity.
Apologies for the missing qualifier. I hope it was clear from context, but I want to correct it just to be sure.