Get started

Moneymanagement

USOIL, Short term long position opportunitiesThe oil has reached its 50% fibonacci retracement level, and making a flag pattern. The entry trigger also presents itself, which is the engulfing candlestick pattern forming around the 50% fibonacci retracements (which i considered as an area of value). The other trigger is with the stochastics oscillator, it turns out that there is a divergence between the price and the oscillator, which indicates a momentarily possibility of a reversals. To summarize why take a long position; Pros: 1. The price reach a 50% Fibonacci retracements level while making a flag pattern (considered as an area of value) 2. There are divergence between the stochastics oscillator and the price leve (entry trigger) 3. The candlesticks forming a bullish engulfing pattern (entry trigger) Cons: 1. 50% Fibonacci retracements area sometimes is not reliable 2. The higher time frame trends still not showing a clear trend Considering the pros and cons, i made a decisions to go for a long position with small lot to compensate for the cons.
FX:USOILLong
by HeriPardi