Is USOil ready to test 60?
Is USOil ready to test 60? This idea is based on my ongoing learnings with Renko Charts in conjunction with indicators I've used on other types charts. I currently have 3 views of a market that I'm looking at and for USOil it breaks out like this:
Daily TF: source/close | style/traditional | blksz/.50
2Hr TF: soruce/close | style/traditional | blksz/.25
5min TF: source/close | style/traditional | blksz/.10
I use the daily TF to get my sense of direction on which way the market is moving over all. The 2Hr is used to look for patterns to trade (e.g. if ADX moves below 20, price patterns for breakouts to trade). The 5min to find the triggers for a trade. In the case where 2 hr is in what I'll call a continuation phase, I look at corrections, consolidations, etc. on the 5min to time an entry in direction of 2hr chart.
This leads me to my current interpretation of USOil. Long term, it looks like price has turned a corner and is moving up. On the Renko Chart, price is above the 20, 50, and 200 EMA and appears to be tracking mid-point of a channel (though channels can be drawn just about anywhere and I feel are subjective). Can oil reach the upper part of channel of even 60/61 by end of January.
The 2 hr chart is showing what could turn into a double top at 54 but this would imply price will drop, which it could. To me, the key lies with the 5min chart and the price action that comprises the last few blocks of the 2hr chart (the blue box on the 2 hr chart is expanded out on the 5min chart). The ADX on the 5min chart had moved well below 20 and price has consolidated into a channel and this off of a double top itself. Two key prices are 54 and 53.50. I think a break up over 54 and carry through past 54.10/20 will signal that price is making a push toward 60. A break below 53.50 and the lower support lines on 5 min could signal a move back to lower support channel on daily.
Daily TF: source/close | style/traditional | blksz/.50
2Hr TF: soruce/close | style/traditional | blksz/.25
5min TF: source/close | style/traditional | blksz/.10
I use the daily TF to get my sense of direction on which way the market is moving over all. The 2Hr is used to look for patterns to trade (e.g. if ADX moves below 20, price patterns for breakouts to trade). The 5min to find the triggers for a trade. In the case where 2 hr is in what I'll call a continuation phase, I look at corrections, consolidations, etc. on the 5min to time an entry in direction of 2hr chart.
This leads me to my current interpretation of USOil. Long term, it looks like price has turned a corner and is moving up. On the Renko Chart, price is above the 20, 50, and 200 EMA and appears to be tracking mid-point of a channel (though channels can be drawn just about anywhere and I feel are subjective). Can oil reach the upper part of channel of even 60/61 by end of January.
The 2 hr chart is showing what could turn into a double top at 54 but this would imply price will drop, which it could. To me, the key lies with the 5min chart and the price action that comprises the last few blocks of the 2hr chart (the blue box on the 2 hr chart is expanded out on the 5min chart). The ADX on the 5min chart had moved well below 20 and price has consolidated into a channel and this off of a double top itself. Two key prices are 54 and 53.50. I think a break up over 54 and carry through past 54.10/20 will signal that price is making a push toward 60. A break below 53.50 and the lower support lines on 5 min could signal a move back to lower support channel on daily.
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