7 Dimension Analysis For OIL

Optimum369 Updated   
TVC:USOIL   CFDs on WTI Crude Oil
πŸ•› TOPDOWN Analysis - Monthly Bullish Structure, Weekly Bearish Inducement

Overview: The monthly market structure maintains a bullish stance, holding key supports. On the weekly chart, a valid low was established, accompanied by a strong bearish inducement. While a demand flip occurred, the overall trend remains bearish, marked by a record session count and inside candle price action. The daily time frame reveals a bearish swing structure with impulsive moves, indicating potential further downside.

πŸ˜‡ 7 Dimension Analysis
Time Frame: Daily

1️⃣ Swing Structure: Bearish
🟒 Structure Behavior: ChoCh
🟒 Swing Move: Impulsive
🟒 Inducement: Suggests potential further downward movement.
🟒 Pull Back: No significant pullback observed.

🟒 Resistance Zones: Market encounters resistance at every supply zone post- ChoCh, forming a bearish build-up, indicating potential future downside. No traps observed.

2️⃣ Pattern

Symmetric Triangle
Shakeout Continuation
Notable Observations:

Momentum candles with Fake out/FOMO.
Tweezer at the internal move top.
Inside candles in the last three days.
3️⃣ Volume: Significant volumes observed at the beginning of the move.

4️⃣ Momentum RSI:
🟒 RSI Below 40: Indicates a super bearish zone with high selling pressure.
🟒 Range Shift: Shifted sideways to bearish, suggesting ongoing bearish activity.
🟒 Divergence: Hidden bearish divergence present.

5️⃣ Volatility Bollinger Bands:
🟒 Middle Band Resistance: Strong rejection observed.
🟒 Head fake: At the top of the move, indicating a potential deep bearish move.

βœ”οΈ Entry Time Frame: H1
βœ… Entry TF Structure: Bearish
β˜‘οΈ Current Move: Impulsive Bearish
βœ” Support Resistance Base: Takes resistance at a significant level.
β˜‘οΈ Candles Behavior: Extremely volatile bearish momentum.
β˜‘οΈ Trend Line Breakout: Confirmed.

β˜‘οΈ Final Comments: Sell at the open.
πŸ’‘ Decision: Sell
πŸš€ Entry: 75.22
βœ‹ Stop Loss: 78.04
🎯 Take Profit: 68.07, 2nd Exit if Internal Structure Changes, 3rd Exit on a trendline breakout or FOMO.
😊 Risk to Reward Ratio: 1:3.5
πŸ•› Expected Duration: 7 days

SUMMARY: The analysis reveals a monthly bullish structure but a weekly bearish inducement. The daily swing structure is bearish with an ongoing impulsive bearish move. Recognized patterns include a symmetric triangle and shakeout continuation. Critical levels, candle patterns, and trendline breakouts were considered for the entry decision. The suggestion is to sell at the open, with detailed entry, stop-loss, and take-profit levels, presenting a risk-to-reward ratio of 1:3.5, and an expected duration of 7 days.
Trade active:
position activated we can open our position
Trade closed: stop reached


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