Crude Futures running into resistance...
Crude Oil Futures (Sep. 2022):
As we observe the descending channels we find that after each tap off of the bottom we get a retracement back to the .618 fib. With that being said, one my find that we are approaching this point once more, could very well happen today.
My Trade Plan:
Normally when making a channel trade like this one I like to scale into it. I do this so that I can get initial exposure to the trade incase it gets front ran by big money. My first entry into the trade will be about 1/5 of what I really intend on risking in this trade. As the price continues to rise and approach the .618 I will scale in the next 3/5ths of the allotted capital. The final 1/5th of the cash is placed above the channel trend and above the golden pocket. I do this because market makers have a tendency to pump/dump prices in order to create liquidity to fill there big longs or shorts. (This is known as a liquidity grab)
Enough blah blah, here are the numbers:
My first entry will be $99.5, 2nd: $100.4, 3rd: $101.3, 4th: $102.35, and 5th: $103.50
Now weather I get all these filled or not, I need to form some TP targets.
My first take profit target will be $95.35, 2nd: $93.75 3rd: $91.35 4th: $88.55, 5th: $78.45
Please leave a comment below on what you think of my analysis and please give me advice as I am a newer trader.
Thanks!
As we observe the descending channels we find that after each tap off of the bottom we get a retracement back to the .618 fib. With that being said, one my find that we are approaching this point once more, could very well happen today.
My Trade Plan:
Normally when making a channel trade like this one I like to scale into it. I do this so that I can get initial exposure to the trade incase it gets front ran by big money. My first entry into the trade will be about 1/5 of what I really intend on risking in this trade. As the price continues to rise and approach the .618 I will scale in the next 3/5ths of the allotted capital. The final 1/5th of the cash is placed above the channel trend and above the golden pocket. I do this because market makers have a tendency to pump/dump prices in order to create liquidity to fill there big longs or shorts. (This is known as a liquidity grab)
Enough blah blah, here are the numbers:
My first entry will be $99.5, 2nd: $100.4, 3rd: $101.3, 4th: $102.35, and 5th: $103.50
Now weather I get all these filled or not, I need to form some TP targets.
My first take profit target will be $95.35, 2nd: $93.75 3rd: $91.35 4th: $88.55, 5th: $78.45
Please leave a comment below on what you think of my analysis and please give me advice as I am a newer trader.
Thanks!
Comment:
$95 :)
Comment:
Hit another take profit of $93.75
Comment:
Got stopped out this morning, great trade!
Sep. 2022 Crude Oil has hit some entry targets and I have also manually added some above 100.5. It is starting to form some promising bearish divergences from 30 min up to the 2 hr. I expect this to topple over within the next day or two.
Happy Trading.