Oilprice
History made with negative oil pricesWhile very technical, also historic, dramatic and influential.
When there is no market for a certain asset, we don't see a price decline, what we see is market failure.
US oil prices plunged well below $0 which is the lowest level since NYMEX opened oil futures trading in 1983.
Master the Simple Inside Bar Pattern
hey guys,
on WTI we have a perfect example of Inside Bar candlestick pattern on a daily chart.
An inside bar is a series of bars or sometimes just one bar that is contained within the range of the preceding bar (mother bar).
The first rule that we should take into account is that inside bars must have a higher low and lower high than the mother bar.
The second rule is that we trade this pattern only after bearish or bullish breakout of a mother bar trading range.
The logic behind inside bar is simple. It indicates a time of indecision and market consolidation. Inside bars typically occur as a market consolidates after making a large directional move (bearish on WTI), you also can see this pattern at key decision points like major support or resistance levels.
For WTI our plan is to wait until a violation of a trading range.
Remember that the candle MUST close below or above the range before we take any action!
Oil "Energy Model"This is a pretty simple model based on a Gann Square and concentric circles and squares. Price over time tends to move up or down 2 circles, or energy levels, before moving in the opposite direction.
Since price made a low near the point marked 0, we should expect that the oil price will generally move higher until the circle marked 2.
The parabola drawn was inspired from several sources, including Martin Armstrong. Price moved down fairly strongly once the peak of the parabola was passed.
It is possible that price may meet resistance at the green 2x1 line. In addition, price often moves in the opposite direction when crossing a square, so it is possible that price could retrace somewhat with the red 39 degree angle line below it acting as potential support.
Depending on how strong and steep the upward climb of price is, oil could move generally higher into 2017 and as late as 2018.
