Is the Crude Oil Market about to Bottom?
Hey Traders here is a quick chart about how you can use your Daily Charts to spot formations in technical analysis . In my opinion the best way to trade a trend is to get in early before the big moves happen. Although we can never be 100% accurate that a new trend is developing we can use history and price action as clues. So in this chart it looks like Crude Could be trying to bottom. Regardless of fundamentals and supply and demand which of course can completely alter market forces at any given time.
Why could it be a bottom?
1. There is a 123 Bottom formation that is almost complete.
2. Historical Seasonal Pattern which demand increases for the summer driving season.
3. COT Institutional Traders showing increases in long positions and decrease in short positions.
The way to trade the 123 bottom is place a buy order if the market breaks above the 2 point.
Place stop loss below 3 point.
Good Luck to us for those that are participating.
Always use risk management to calculate exactly how much can afford to lose before considering placing any trade!
You never know when a big move can occur so this is the best way to try and spot a trend early before it develops.
Trade Well,
Clifford
Why could it be a bottom?
1. There is a 123 Bottom formation that is almost complete.
2. Historical Seasonal Pattern which demand increases for the summer driving season.
3. COT Institutional Traders showing increases in long positions and decrease in short positions.
The way to trade the 123 bottom is place a buy order if the market breaks above the 2 point.
Place stop loss below 3 point.
Good Luck to us for those that are participating.
Always use risk management to calculate exactly how much can afford to lose before considering placing any trade!
You never know when a big move can occur so this is the best way to try and spot a trend early before it develops.
Trade Well,
Clifford
