USOIL, Short term long position opportunities
The oil has reached its 50% fibonacci retracement level, and making a flag pattern. The entry trigger also presents itself, which is the engulfing candlestick pattern forming around the 50% fibonacci retracements (which i considered as an area of value). The other trigger is with the stochastics oscillator, it turns out that there is a divergence between the price and the oscillator, which indicates a momentarily possibility of a reversals.
To summarize why take a long position;
Pros:
1. The price reach a 50% Fibonacci retracements level while making a flag pattern (considered as an area of value)
2. There are divergence between the stochastics oscillator and the price leve (entry trigger)
3. The candlesticks forming a bullish engulfing pattern (entry trigger)
Cons:
1. 50% Fibonacci retracements area sometimes is not reliable
2. The higher time frame trends still not showing a clear trend
Considering the pros and cons, i made a decisions to go for a long position with small lot to compensate for the cons.
To summarize why take a long position;
Pros:
1. The price reach a 50% Fibonacci retracements level while making a flag pattern (considered as an area of value)
2. There are divergence between the stochastics oscillator and the price leve (entry trigger)
3. The candlesticks forming a bullish engulfing pattern (entry trigger)
Cons:
1. 50% Fibonacci retracements area sometimes is not reliable
2. The higher time frame trends still not showing a clear trend
Considering the pros and cons, i made a decisions to go for a long position with small lot to compensate for the cons.
Trade geschlossen: Ziel wurde erreicht:
My target Price have been reached :)
Happy profit Y'all
Happy profit Y'all