On the left side, you can see the big sine-wave-swing.
These sine-wave swings often get broken fist, before
a further movement in the original direction.
And so it happened.
Price was not able to move further north.
Oil organisations did all to keep price up - even manipulating in the news...
As I wrote in the previous post: The market makes the price, not a organisation and not even a talking head. We must understand that the value of everything is determined by the trust and distrust of us, the people, the consumer, the markets!
In my last posts you could (and thanks to TradingView you still can) follow my analysis and see how it evolved. It's not about my analysis - it's about the framework I use to be able to make such projections and forecasts. Everyone can do this by learning it...
Back to the chart:
So, we broke the big white centerline.
As the framework dictates, price comes back to where it broke out and test/retest the centerline again.
If price fails to jump back above the centerline, then we have a very high chance to go down to the next line, the L-MLH.
If you are interested in more information about the Fork Trading Framework and how to apply it to the markets, just drop me a private message. I keep you informed about my new course material, coaching and services.
The "zone" got washed, now you should already think about to enter on this longterm short.
Wait for a test/retest?
Not the badest idea.
Always ask yourself: "Where's a good stop".
TradingView Blog: http://www.forktrading.com/tradingview-blog