JICPT| Crude oil bounced back from 5yr MA as expected
Hello crude oil traders. Crude oil has been volatile for the past 2-3 days due to the concern of future economy growth caused by another wave of covid-19 spread.
However, I published a idea titled 'oil may seek support around 68 with a compromised deal' when the price was around $72. What happened is price went down as low as $65.20 yesterday. So I missed the reversal level.
What I want to point out is the method used in my idea. The moving average and central theorem theory. Yep, we probably learnt the theory years ago in our school life. The central limit theorem (CLT) states that the distribution of sample approximates a normal distribution (also known as a “bell curve”) . Another part that I used is flip. So, basically, a confluence setup.
Firstly, you got the average price of a certain period by the MA.
Secondly, got the roughly zone(1 or 2 standard deviation from the mean)
Thirdly, apply other trading skills that work for you, e.g. supply & demand, flip, fib.
Fourth, mark the confluence zone or level it might turn around.
Fifth, set the alert and watch price action on smaller timeframe to achieve higher winning ratio.
Sixth, trade your plan and manage your risk based on your plan.
Lastly, post trade record and move on to the next one.
Hopefully, the flow helps.
Give me a like if you're with me!
However, I published a idea titled 'oil may seek support around 68 with a compromised deal' when the price was around $72. What happened is price went down as low as $65.20 yesterday. So I missed the reversal level.
What I want to point out is the method used in my idea. The moving average and central theorem theory. Yep, we probably learnt the theory years ago in our school life. The central limit theorem (CLT) states that the distribution of sample approximates a normal distribution (also known as a “bell curve”) . Another part that I used is flip. So, basically, a confluence setup.
Firstly, you got the average price of a certain period by the MA.
Secondly, got the roughly zone(1 or 2 standard deviation from the mean)
Thirdly, apply other trading skills that work for you, e.g. supply & demand, flip, fib.
Fourth, mark the confluence zone or level it might turn around.
Fifth, set the alert and watch price action on smaller timeframe to achieve higher winning ratio.
Sixth, trade your plan and manage your risk based on your plan.
Lastly, post trade record and move on to the next one.
Hopefully, the flow helps.
Give me a like if you're with me!
Comment:
Yep. Keeps on going up.
plan your trade and trade your plan
