TVC:USOIL is trapped in a bear flag within pennant formation which shows a clear market boundaries to a traders.
The trade opportunity is to go short, a measured move shows 15% move down .With trading any flag pattern the trick is to place a short only after prices print a lower high within the flag structure.
Now this how i will trade this pattern. Observe that
1). I am early to this trade .. so best is to wait on this formation to see how it reacts over the next few days
2). The confluence of resistance at the top of the descending trendline . that give a sense of strength of the resistance at that zone ..I will be lucky to get to a 3 pin touch on the top of the pendant formation.
3. that market may have a fake out or over zealous buyers like the previous high within the pendant..
So i am going to build a short position. (i mean i will stack my short entries) to accommodate all this observations
BY
1 i will have short entries at $60 (there's exhaustion wick on the 1D candle )
2 a few within the confluence spot
3 then in the case of a fake out a few more at between $62 -$63.3
4 will only increase leverage after the lower high is formed within the flag pattern ..
My stop loss is 63.5 which is higher that the previous high
NOTE: that trade is going to take few days or weeks (this to account for fees)
May the bears be with me on this!
The trade opportunity is to go short, a measured move shows 15% move down .With trading any flag pattern the trick is to place a short only after prices print a lower high within the flag structure.
Now this how i will trade this pattern. Observe that
1). I am early to this trade .. so best is to wait on this formation to see how it reacts over the next few days
2). The confluence of resistance at the top of the descending trendline . that give a sense of strength of the resistance at that zone ..I will be lucky to get to a 3 pin touch on the top of the pendant formation.
3. that market may have a fake out or over zealous buyers like the previous high within the pendant..
So i am going to build a short position. (i mean i will stack my short entries) to accommodate all this observations
BY
1 i will have short entries at $60 (there's exhaustion wick on the 1D candle )
2 a few within the confluence spot
3 then in the case of a fake out a few more at between $62 -$63.3
4 will only increase leverage after the lower high is formed within the flag pattern ..
My stop loss is 63.5 which is higher that the previous high
NOTE: that trade is going to take few days or weeks (this to account for fees)
May the bears be with me on this!