Monday, April 9, 2012

how to enter oversold /cl

gap downs... and oil is broken...

So what complicated pattern do you need to insure a safe entry?  It must be difficult.



It's the same old pattern I've been talking about the past 2 weeks - -the triple bottom.  Once you see it -- after an oversold condition arises - you have an obvious entry with a clear stop that is usually no more than 10 ticks away from entry.    

 /cl has been moving 100 ticks or more for weeks -- I think I like this market better than /tf.

I did not trade this morning but eventually (not pictured in chart) the /cl got too far.  I waited until - -yup, a descending triple top formed and  it dropped about 25 ticks with about 3 ticks of heat into the close.  These patterns take time to resolve but they are worth the time and effort.

 There was also a triple bottom in /tf at 797ish that resolved middle of day for 70 ticks upside.

 So keep it simple.  Find a pattern/market that feels comfortable and trade it your way.

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