USOIL – Daily Rejection & 4H Bearish Engulfing: Short Setup from 💬 Trade Description:
Price on **USOIL** recently pushed into a **daily supply zone** around the **62.00 area**, which had previously acted as a strong rejection point.
On the **daily timeframe**, a **clear pin-bar rejection** formed, showing that buyers lost control and sellers are stepping back into the market.
Dropping down to the **4-hour timeframe**, price created a **bearish engulfing candle** directly inside that same daily supply zone — confirming a strong **shift in momentum** and offering a precise entry opportunity.
This setup aligns perfectly with the **higher-timeframe bearish structure**, where the market continues to print **lower highs and lower lows**.
The reaction from the 62.00 zone suggests a potential continuation to the downside as price seeks liquidity near the **next major demand zone around 57.00**.
⚙️ Trade Breakdown:
* **Weekly Bias:** Bearish — market creating lower highs.
* **Daily Confirmation:** Pin bar rejection from daily supply.
* **4H Entry Trigger:** Bearish engulfing after retest.
* **Entry:** After 4H candle close.
* **Stop Loss:** Above the 4H engulfing high.
* **Take Profit:** Targeting 57.00 (next demand zone).
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## 🧩 Technical Insights:
* The **daily pin bar** served as higher-timeframe confirmation that sellers were defending a premium level.
* The **4H engulfing** offered an early confirmation of short-term structure shift.
* The **trade idea** follows a simple, high-probability model:
**“Daily confirmation → 4H execution → Patience for follow-through.”**
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## 💭 Trader’s Note:
Patience was key on this one. I waited for the daily signal first before dropping to the 4H to catch the clean bearish momentum. This is how I’m structuring all my trades now — only executing when the higher-timeframe aligns with the lower-timeframe trigger.
Discipline > Frequency.
Quality > Quantity.
