oil was on a 2 day plunge -- gapping down to 95.35 on Sun. morning.
As the day progressed -- a clear downtrend line formed on the higher timeframe 15 m. candles...
Market Signals improved quickly with most sectors green and EWP, EWI up over 2%.
Eventually the TL broke and this changed the picture -- one should attempt a long here as oil could easily climb on short covering with no clear resistance for a while.
As it turned out -- /cl moved about 80 ticks at best... before double topping, then triple topping -- a clear signal to exit. Either way - this trade would have provided a strong daytrade with about 8:1 R:R.
Key concepts:
1) Identify a clear trend on a higher timeframe.
2) Monitor Market Signals for market direction
3) Look for a 3 bump pattern or breakout pattern after the TL has been broken. (In this case, one could vaguely make a case for a triple bottom as the TL was broken.
4) Set a tight stop as this breakout pattern should work immediately.
Timing is indeed everything.
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