A Nice SHORT in WTI
Updated
Hello again, traders. Long time to not post anything over here.
Since yesterday I had this operation opened. A nice short in WTI.
My main entry was in the orange line but once I saw price was not going to reach it, I had to switch into LTF to seek a refined entry. At least, I was sure price was going to go down around that zone so I took my risk and pulled the trigger.
At the time I am writting this: SL is at entry price, took partials and I will leave the trade running.
First -possible- TP: @ $60.60 [below the Sell Side Liquidity (SSL)].
Second -possible- TP: @ $57.28 (below the SSL).
I like to trade WTI in the Daily Chart because it brings me a better understanding of what price is likely to do; also, since all this two years trading it and studying, WTI is moved by global news but price goes -always- where liquidity is.
Monthly Chart.
As you can see in this chart, I marked a high and a low; that is a Dealing Range (ICT term). Or, you can see it as Lower High (LH) and Lower Low (LL). That LH & LL creates a range and if we look back at the chart, the market structure is Bearish (in the Monthly chart, of course).
One thing I have noticed about oil is that it retraces deep; if you use Fibonacci, use it in your Daily Chart and look it for yourself, WTI loves Fibonacci's 89%.
So, back again at the Monthly chart perspective, price last month went for all the liquidity above those two previous highs until it reached and filled the Fair Value Gap (FVG, ICT Term) and retraces.
Possibles zones where price can go in this retracement are deliniated with blue lines: $53.90, $49.29, $46.24, $41.87.
Weekly Chart.
You can see in detail what I mentioned ye above. Price purged the liquidity above those old highs and the retraces.
What I would like to see in the weekly chart? A run below $57.24. Why? Because if price break that zone, it would mean a Break of Structure (BOS) and would be more than likely than price reaches into some of the blue lines below.
After the run below, I would expect a retracement and I will open another short.
Hope this analysis likes you.
Until the next time, guys!
Since yesterday I had this operation opened. A nice short in WTI.
My main entry was in the orange line but once I saw price was not going to reach it, I had to switch into LTF to seek a refined entry. At least, I was sure price was going to go down around that zone so I took my risk and pulled the trigger.
At the time I am writting this: SL is at entry price, took partials and I will leave the trade running.
First -possible- TP: @ $60.60 [below the Sell Side Liquidity (SSL)].
Second -possible- TP: @ $57.28 (below the SSL).
I like to trade WTI in the Daily Chart because it brings me a better understanding of what price is likely to do; also, since all this two years trading it and studying, WTI is moved by global news but price goes -always- where liquidity is.
Monthly Chart.
As you can see in this chart, I marked a high and a low; that is a Dealing Range (ICT term). Or, you can see it as Lower High (LH) and Lower Low (LL). That LH & LL creates a range and if we look back at the chart, the market structure is Bearish (in the Monthly chart, of course).
One thing I have noticed about oil is that it retraces deep; if you use Fibonacci, use it in your Daily Chart and look it for yourself, WTI loves Fibonacci's 89%.
So, back again at the Monthly chart perspective, price last month went for all the liquidity above those two previous highs until it reached and filled the Fair Value Gap (FVG, ICT Term) and retraces.
Possibles zones where price can go in this retracement are deliniated with blue lines: $53.90, $49.29, $46.24, $41.87.
Weekly Chart.
You can see in detail what I mentioned ye above. Price purged the liquidity above those old highs and the retraces.
What I would like to see in the weekly chart? A run below $57.24. Why? Because if price break that zone, it would mean a Break of Structure (BOS) and would be more than likely than price reaches into some of the blue lines below.
After the run below, I would expect a retracement and I will open another short.
Hope this analysis likes you.
Until the next time, guys!
Trade closed manually
When price could not broke the last low formed, I closed 90% of the position and let the rest float. As you can see, trade was close cause it hit SL but it does't matter because I have moved my SL to BE.So, it was a successful trade for me. It's time to see why price go to my SL, what's up there that price had to go over there. Is there liquidity yet to grab? Those are some of the questions I do to myself in order to see what my trade "fail".
Until the next time, guys!
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