Hammer candle today...
Oil plunges with everything else -- fear run rampant.
And then it doesn't. You just trade your plan. If your plan is based on years of observation or backtesting and sweat... then trade your plan.
Eventually -- /cl tapped out a 3 bump bottom -- the very low being close to a double-bottom area.
You couldn't have known what would happen next -- but you could take a long and risk all of 8 ticks... and watch it go... for the rest of the day.
I cut off the chart too early -- in fact, /cl ran over 150 ticks! from this entry and ... you would have never been down more than $20 bucks.
/tf also had a perfect 3 bump TL form much later and that one ran around 90 ticks.
The TL is the place to be.
Fears of Greece and whatnot set these patterns up since everyone reacts too strong to short term news (which has very little affect on 99% of most stocks). So take advantage of human emotion.
This pattern works because it is essentially structured on how human emotion works. Unless people change their psychology - (I mean the entire species) -- this pattern will continue to provide big rips and small losses when it does fail.