FullTimeTrader
Long

USOIL-simple way to trade oil

FX:USOIL   Crude Oil (WTI)
1932 11 25
Sometimes we love to complicate things, may be this is the nature of human being. That includes me off course.
This is a simple analysis using basic patterns and technical analysis , everything is pointing at oil             has bottomed and could start a HUGE long term rally.
Looking at monthly chart we see a bullish bat already triggered. Price reacted to the PRZ forming a pinbar or hammer (ideal scenario)
There is also a strong level a S/R at that area (ideal scenario).
snapshot
That would be enough, but if we want more proof we have this weekly chart:

- price broke strong level of S/R with a DECISIVE candle (ideal scenario)
- very clear engulfing bullish candle (ideal scenario)
- price is testing that level and is bouncing form it (ideal scenario???-lets see next days)

I think the best way to take this trade us using INVESTING STYLE, as follows:

- we open a position at current price with no leverage or negative leverage
- if price makes new lows we ADD new positions
- repeat this process until prices rallies

This style is not for everyone off course but it is used by the big investors ("smart money")

Best regards.


I
scwcompton
a year ago
So you think technical analysis outweighs all the overwhelming fundamentals that say oil is oversupplied?
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FullTimeTrader scwcompton
a year ago
Hello, i posted this idea to all those traders who may consider or discard it, im not pretending to be right. Regards.
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FullTimeTrader
a year ago
Analysis on D1 chart. The main tool here is continuum bullish divergence, a very reliable signal i have backtested.

snapshot
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FullTimeTrader
a year ago
Possible setup on H4 chart:
snapshot
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Yahia.Awes FullTimeTrader
a year ago
No Head and shoulder?
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Yahia.Awes Yahia.Awes
a year ago
I look for a long at 42 area.
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Yahia.Awes Yahia.Awes
a year ago
Head and shoulder in potential falling wedge.. I look for a buy at least at neckline, not too early from here shorting.
snapshot
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FullTimeTrader Yahia.Awes
a year ago
Hello, thanks for comments, i like to trade the HS pattern too. But this pattern works better at the FINAL stage of a trend, here the bullish trend is beginning according to long term analysis. I remind this to myself also becaused i did this mistake many times before. Regards.
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moneymaking
a year ago
Sounds like a great plan mate. All the BEST to you :)
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I totally agree, however do you think that crude oil could go up while S&P500 goes down? the S&P 500 looks pretty bad medium term (especially according to Neely), though there inflation expectations could go back up if crude oil goes back up and that's what the Fed needs... or would the rally in crude oil postpone the S&P 500 crash? could you please comment?
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FullTimeTrader ida.pagnottella
a year ago
Hello, Thank for comment. Long term I expect the SPX500 to rally for a last leg up. This is an analysis i posted before. From my point of view correlation gives general useful information but not entry points or trades because timing is different.
SPX500-The stock market is crushing as expected. What
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