Crude is like a wood deck that needs a stain job right now. So far we have one coat of stain, but it needs to dry so we can apply the second coat. In this analogy, the price of Crude is the deck, the first coat of stain is the big drop we had today, the drying stage is a relief rally into $85.75, and the second coat is another smaller drop to the Golden Pocket ($84.2-83.95) on the chart. After we get the second coat applied we must now let it dry before enjoying it. The second round of drying is the bounce off of the parallel channel noted on the chart ($83.8). Once all of these steps are taken care of we can now enjoy the freshly stained deck! The enjoyment stage of this analogy is the part when we sit back and watch our account rise and take profit along the way.
You may be asking.... what if it rains on the stain before it dries? Well, that's why we use stop losses. I will update this post or make a new post if this trade in invalidated and where Ill be looking next.
Trade responsibly, and good luck.
You may be asking.... what if it rains on the stain before it dries? Well, that's why we use stop losses. I will update this post or make a new post if this trade in invalidated and where Ill be looking next.
Trade responsibly, and good luck.
Comment:
I took a position at the gold trendline.
Comment:
Took Profit.
Comment:
entered at 82.45
existed at 84.5
Quick, but great trade!
existed at 84.5
Quick, but great trade!