All the messing around in the sideways area (dark red) is usually managed to "load the boat".
If price breaks out to the upside, there's even a chance that we could forget to find a entry like I have projected with the arrows.
What also pops into my eyes is the slightly exponential curve that's begin to build with the last couple bars...
Putting the Toe into the water is not a bad Idea for me. If the scenario becomes real, I would load up on new pullbacks.
It depends how you define structure. Let me show you how I see structure here:
Now, of course this would be a huge stop and probably way too big for most of retail traders.
For a great Risk/Reward you need a smaller stop, right?
So why not analyse the "Flow" instead of the whole trend. If you get the Flow right, then you can lean on this structure too:
So here you have the TREND, which is stair stepping to the downside.
But the FLOW is currently up. And within the flow you also have structure. So you could put your stop behind this cheaper Pivot Low.
If this is still too much, then you probably should not trade this underlying because of too much risk. Or switch to the ETF (WEAT) where you could manage the size properly.
Hope this helps :)
Yes, 100% with you.
What I have posted in the first chart is an "Idea" how the market could act. NOT how it WILL act.
This is where most of the retail traders fail.
a) taking information for granted which they have not studied or read thoroughly and
b) not thinking in advance in terms of possibilities
As an MG student I'm sure you know what I'm talking about ;-)
Have a sunny day mberoakoko
Thank you AndyA.
It's only what my eyes see.
Don't understand it as a "forecast" ...so no coffee-ground reading here ;-)
T'care and thanks for chiming in!