Crude Oil: Price Action Tips for Big GainsTVC:USOIL AlexGoldHyunter Technical Analysis Using Price Action Techniques
Key Levels and Structures
Support and Resistance Levels:
Resistance: Around 71.00 (marked by the red dashed line and "Equal Highs").
Support: Around 68.75 (marked by the green line labeled "Swing Low").
Fibonacci Retracement Levels:
0.382: 70.50904
0.618: 69.27906
0.786: 69.58792
Break of Structure (BOS):
Multiple BOS annotations indicate significant price movements breaking previous highs or lows.
Change of Character (CHoCH):
Indicates a potential reversal or shift in market sentiment.
Indicators
Moving Averages:
The chart includes two moving averages (red and blue lines), which can be used to identify trends and potential entry/exit points.
Volume:
Volume bars at the bottom indicate the trading activity, which can confirm the strength of price movements.
Relative Strength Index (RSI):
The RSI indicator shows overbought or oversold conditions, which can be used to time entries and exits.
MACD:
The MACD indicator at the bottom shows momentum and potential trend reversals.
Buy Strategy
Entry:
Look for a bullish CHoCH or BOS above a significant resistance level (e.g., 71.00).
Confirm with increasing volume and a bullish crossover in the MACD.
RSI should be above 50 but not in the overbought zone.
Stop-Loss:
Place a stop-loss below the recent swing low or a significant support level (e.g., 68.75).
Take-Profit:
Use Fibonacci extension levels or previous resistance levels to set take-profit targets.
Sell Strategy
Entry:
Look for a bearish CHoCH or BOS below a significant support level (e.g., 68.75).
Confirm with increasing volume and a bearish crossover in the MACD.
RSI should be below 50 but not in the oversold zone.
Stop-Loss:
Place a stop-loss above the recent swing high or a significant resistance level (e.g., 71.00).
Take-Profit:
Use Fibonacci retracement levels or previous support levels to set take-profit targets.
By using these price action techniques and indicators, traders can develop a structured buy and sell strategy for trading CFDs on WTI Crude Oil. Happy trading! 📈📉
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