Take profit on all short holdings as compiled in accumulation zones in Idea # 7. This is a simulated $100,000 account. Equity increase for this move is 20%. Trade duration is one week.
I have taken profit at the neckline of the double H&S formation < $31.70 >, and expect a right shoulder formation to re-short in between < $33.40 - $32.60 >.
Does not make sense, I think this is a mistake! It's only expected... If that's the case, then that means Crude Oil need to go up by $36 and then sell to $28
Summerset
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@chabertpersonal, Prices will not break neckline straight down
Also there is No momentum for $36 to be seen.
Best to accumulate shorts in right shoulder <$32.55-$33.2> & target $28
Take Care & Stay Safe
Pookster
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A break below resistance at roughly $30.50 would be good entry for new shorting position?
Summerset
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@Pookster, No, Not really.
I don't like sell stops, as they put the trader in a skewed Risk:Reward Disadvantage.
For example if you sell a break below $30.50 to target $28, price could still climb against you till $32. before seeing $28, and you would be carrying an uneasy draw down
It is best to fan out the position say in small 10k shorts all the way from $32.30-$32.40-$32.5-$32.6-$32.7 ........... all the way gradually to $33.2
These are lvls between 38.2% to 61.8% fibs, and typically yr correction should take you to 50% , so some lots will fill, & you would be holding a short averaging $32.75
Which puts you at an advantage regarding yr SL level, than yr entry below $30.50
Its all about money management, not direction. And taking good care of yr Risk, before you even consider yr Reward.