It's been a while since I could find a great setup and here it is.
I tried to make everything clear on the chart and combine both analysis with ratio trading (which is really hot these days.)
As the chart suggests we have started a higher degree correction in USOIL from 13th of January.
Whether it's a correction or a New , it's got the shape of an impulse (Fast and made up of 5 waves).
So I expected a 3 wave correction of the same degree.
Fortunately the 3 wave is getting the shape of an easy ABCD. (Marked as ABC on the chart)
We're bouncing off 61.8 of the A leg at the of the lesser degree correction and it gives more credibility to the fact that an is taking form.
I want to direct your focus to the only triple ratio confluence at the setup area with 3 great ratios.
I shorted USOIL before market closed on Friday and I will add to it once it opens tomorrow.
I've put the stoploss right above the turning point in order to be out if these ratios don't hold.
I certainly have no interest in staying in the trade if this damn tight ratio confluence is penetrated.
I've put a more conservative target right above 0.887 retracement of the impulse just in the case that we have a contracting form of correction.