Here we are looking at FX:USOIL , which is presenting a buying opportunity in the form of a bullish bat pattern. The confluence between the 161.8% extension and levels is not that strong, but they are located close to one another. On the higher time frame, like the 4 hour or even Daily, we did get a break of the previous HL and placed in a new LL. This is just an early sign of potential break in the up-trend in FX:USOIL BUT we will only get a change in the up-trend after we put in 2 new LL's and 1 LH.
Thus, after the new LL we are still just ranging between the recent HH and the new LL. So our entry is located close to the new LL, giving us a good risk to reward on this trade setup. The stops and targets are labelled on the chart above.
Total Risk: -3.60%
Total Reward: +7.99%
That’s all I would like to cover for this trade setup. If you guys have any questions or comments about this trade, feel free to write in the comment section located under this description section. Hit that thumbs up button (top left corner of this chart) if you like the idea. Thank you everyone for all the SUPPORT that you have given me so far, I truly appreciate it. All The Best :)
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Illustrates the break of up-trend on 4 hour chart: