I've seen USDWTI trade out of its downward channel (reversing from a significant 2hr level)
It has currently created/in the process of creating, its wave 1
Hypothesis:
I am looking for a wave 2 pullback to the purple reversal zone where I have indicated by the blue arrow. Price should bounce from this area and create its wave 3.
A bounce at this level after a abc correction should produce a impulsive wave higher (wave 3) similar to the wave 1.
Risk Management: Take off half at 1:1, and move stops to Break even. Let rest ride to Target.
Trade active
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Trade is now live:
Will continue to monitor on the 1hr chart.
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Ideally I would like to see price have difficulty staying in my buy zone. Because it is taking soooo long to leave the area... I am recommending taking 1/2 of the position off at entry price. This will decrease your risk if price falls to our stop.
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Update: If you used the exact numbers here for the stop, you may have been hit, or you may have not been filled. My stop was actually 2 ticks away from where price reached. This update is for those still in, we have reached 1:1 we can take half off and let the rest ride.
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Also you should be at Break Even with the remainder of your trade.
Trade closed manually
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Remainder of trade closed automatically at Break Even.