USOIL - Bearish BAMM, Bullish Bat and Market Structure
Updated
Today I've brining you all an in-depth view on USOIL, firstly I'll break down the base of my analysis on the 1h chart which shows two setups, bearish bamm and bullish bat.
The measurements for a valid bat pattern are detailed below.
B: 0.382 - 0.50
C: 0.382 - 0.886
D: 1.618 - 2.618
Final X to D: 0.886
I understand the BAMM theory will be relatively new to most traders, this style of trading simply focuses on a breakout of the B point.
Upon a break and close below/above B, in this situation below, I look to capitalise on the move towards D which confirms the potential reversal zone of the bullish bat pattern.
We can see there has been various tests of this level.
Taking a look at the daily chart below we can see a clear demand zone between roughly $55 and $54 which aligns with the support trendline.
I'll be looking for a sell off to drive prices towards this area, from there I can further analyse the bullish bat for a long opportunity if this level of support holds.
Although, I do expect price to drop lower than D to the demand zone at X.
If you have any analysis to contribute feel free to leave it below :)
The measurements for a valid bat pattern are detailed below.
B: 0.382 - 0.50
C: 0.382 - 0.886
D: 1.618 - 2.618
Final X to D: 0.886
I understand the BAMM theory will be relatively new to most traders, this style of trading simply focuses on a breakout of the B point.
Upon a break and close below/above B, in this situation below, I look to capitalise on the move towards D which confirms the potential reversal zone of the bullish bat pattern.
We can see there has been various tests of this level.
Taking a look at the daily chart below we can see a clear demand zone between roughly $55 and $54 which aligns with the support trendline.
I'll be looking for a sell off to drive prices towards this area, from there I can further analyse the bullish bat for a long opportunity if this level of support holds.
Although, I do expect price to drop lower than D to the demand zone at X.
If you have any analysis to contribute feel free to leave it below :)
Trade active
Short, target is 55.28.Comment
Move stop loss into profit, price is now closing in on the D point.Trade closed: stop reached
Closed at breakeven, look for price to drop from resistance at B... Possible opportunity to re-enter.
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