Elliott Wave 5.0 "Reboot"

Wednesday, March 16, 2016

WTI Crude Oil Intraday Bull Trap?




Due to the fantastic impulse looking really we can get dazzled by it and completely miss a potential triangle in progress. We don't know if it will happen, but if it were true, then this is a screaming sell in crude oil. 

Besides, when something is pointing up near vertical it's always a good time to sell. Of course, if the trader has just jumped on the oil bandwagon well he is just going to get forced out with a guaranteed loss.  If this trend starts to go sideways, then the triangle could be a false reading. 

But if the triangle comes in then there will be another opportunity  to go long, of course you would be trying to catch a falling knife.  At the end you would be catching a "C" wave falling knife.  Now you know why I will not give out trade setups because not enough readers all check in at the same time, and fewer yet have experience catching a falling knife.   

We had two crashes in the past two weeks or so that would classify as catching a falling knife and they turned into pretty decent reversals. Of course in the real world and with real money there is much more fear involved.  I trade a very small real money Forex account and a virtual $100,000 account all the time, and when you take a position that is too large and we are wrong, then we also pay for it in a big way.