BOIL in strong downtrendBOIL is in a strong downtrend.
The daily chart has hit a new low
But the 1-hour chart has now become "extended"
Remember there are 5 waves in an average trend. Once the trend becomes extended, the price likes to break above the 50 SMA to "recalculate" and continue or "recalculate" and reverse.
We love both right? The question becomes, which direction will the market choose?
No one knows. So all you can do is trade your strategy off of the current patterns and information that you see.
That's why 'risk management" is so important. Use 1% of your current total account value on each trade.
That's formula I use in my trade plan and it has served me well.
Link in profile :)
That's all you can do.
