I believe we are in for a bit of a correction on the lower time frame. Price may fall to the 1.27 or even the 1.16 extension.
I will be looking for a break of the 1 hr trend line (purple) followed by a small correction (3-5 x 15 minute sideways).
See attached chart for my breakout procedure.
If price moves too far away from the 1 hour TL before correcting I would not take the trade due to my R/R ratio rules.
Look for a reversal around the 4 hr trend line (blue).
Educate yourself, create your own trade plan, Validate through other trader's ideas. Own your trade good or bad.
Good luck trading
I will be looking for a break of the 1 hr trend line (purple) followed by a small correction (3-5 x 15 minute sideways).
See attached chart for my breakout procedure.
If price moves too far away from the 1 hour TL before correcting I would not take the trade due to my R/R ratio rules.
Look for a reversal around the 4 hr trend line (blue).
Educate yourself, create your own trade plan, Validate through other trader's ideas. Own your trade good or bad.
Good luck trading
Comment:
Price hit the reversal area but I don't have an area of resistance so it may travel up to the 4 hr trend line. Watch for a bounce or break.
Comment:
Price bounced as predicted and has re-entered a daily support area. I am expecting a bounce from this area before continuing lower to the $40. - $41 area. The bounce could be a small bear flag or a pullback the blue trend line
Trade closed: target reached:
This trade took a lot longer than anticipated. The ride down for oil may not be over for a while so I will post a new chart as this one is long in the tooth.
