First Oil Buy Setup
The overall current trend for US Oil is bullish, so I rarely look for the sell. In this case, I used the Fib on the largest wave in the uptrend and saw that the first retraced just a few pips below the 61.8 level.The second wave had made it highest high and was retracing between the 50 and 61.8 levels when I was looking for the buy setup. At this point, I knew the market would range/consolidate (yellow box) because it had previously consolidated in this area (along black line) then would continue short until the 61.8 level.
My support and resistance lines (black lines) helped me to identify a zone/area the market was most likely to hit before continuing up. I highlighted the area where I would have entered the market for the buy (purple box). When I checked my chart later, I saw that price and in fact retraced just a few pips below the 61.8 Fib level, wicked my buy zone and took off bullish.
Unfortunately, I had missed the whole move of about 200 pips.
My support and resistance lines (black lines) helped me to identify a zone/area the market was most likely to hit before continuing up. I highlighted the area where I would have entered the market for the buy (purple box). When I checked my chart later, I saw that price and in fact retraced just a few pips below the 61.8 Fib level, wicked my buy zone and took off bullish.
Unfortunately, I had missed the whole move of about 200 pips.
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