West Texas Oil : TRADE WAR !! Very likely bullish stretch!After a strong bullish impulse ( Bull ) that began on December 11, 2024, on January 20, 2025 it took a breather and began a bearish phase ( Bear ) as can be seen in the chart.
The price has retreated to the key zone of 61.8% Fibonacci ( 72.5 ), respecting it and gradually gaining bullish strength again. In H4 time frame the MOMENTUM is bullish ( Bull ), but its STRENGTH is still bearish ( Bear ).
--> When will the strength turn bullish?
When the price exceeds the 74.5 zone
--> Today the IVO indicator alerted us of the first serious bullish signal ( Bull ) that could tell us that the price could be heading towards the 74.5 zone again. And if we add to this the TRADE WAR, it is very likely that it will go and overcome it without problems, passing the FORCE to bullish (Bull), and therefore, we will see with a high probability a new attack on the 79.3 area
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Strategy to follow:
ENTRY: We will open 2 long positions if the H4 candle closes above 74.5
POSITION 1 (TP1): We close the first position in the 79.3 area (+6.4%)
--> Stop Loss at 71.5 (-4%).
POSITION 2 (TP2): We open a Trailing Stop type position.
--> Initial dynamic Stop Loss at (-4%) (coinciding with 71.5 of position 1).
--> We modify the dynamic Stop Loss to (-1%) when the price reaches TP1 (79.3).
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SET UP EXPLANATIONS
*** How do you know which 2 long positions to open? Let's take an example: If we want to invest 2,000 euros in the stock, what we do is divide that amount by 2, and instead of opening 1 position of 2,000, we will open 2 positions of 1,000 each.
*** What is a Trailing Stop? A Trailing Stop allows a trade to continue gaining value when the market price moves in a favorable direction, but automatically closes the trade if the market price suddenly moves in an unfavorable direction by a certain distance. That certain distance is the dynamic Stop Loss.
-->Example: IF the dynamic Stop Loss is at -1%, it means that if the price drops by -1%, the position will be closed. If the price rises, the Stop Loss also rises to maintain that -1% in the rises, therefore, the risk is increasingly lower until the position becomes profitable. In this way, very strong and stable price trends can be exploited, maximizing profits.
