Oil is showing a classic rectangle bottom. This is a pattern at the end of a down trend. The criteria are. That one of the horizontal lines needs to be touched 3 times and the other 2 times. This fulfills the criteria.
Rectangle bottoms can break out in either direction. Be prepared to take a short or long position on candle close (in this case a 4h candle.)
Rectangle bottoms do even better when the volume goes down as the rectangle moves to the right. This seems to be the case here.
You can also trade this by going short when price touches the upper line and buy when it touches the lower line.
You can see the potential targets and they are substantial. Though I would decrease my position as it approaches the target and pocket some profits along the way.
Please like and follow if this has been helpful.
Ms Bunny
Rectangle bottoms can break out in either direction. Be prepared to take a short or long position on candle close (in this case a 4h candle.)
Rectangle bottoms do even better when the volume goes down as the rectangle moves to the right. This seems to be the case here.
You can also trade this by going short when price touches the upper line and buy when it touches the lower line.
You can see the potential targets and they are substantial. Though I would decrease my position as it approaches the target and pocket some profits along the way.
Please like and follow if this has been helpful.
Ms Bunny
