Crude Oil March 20

[smwinc]

	Quote:	brownsfan019
	That was my point in the VSA thread but candlew feels like getting into a pissing match about what it was technically called. I apologize James if my humor was lost in this thread. Just tired of newbies saying something doesn't work when they obviously do not have a freakin clue...

Exactly.

If you actually read some of the ORIGINAL Japanese work (i.e. rather than relying on Steve Nison's interpretations of their work) they do emphasis it.

Candlesticks are very 'subtle'. They are designed to describe a scenario, to give more information as to what is going on.

They were NEVER designed to be used "separately" of each other. I.e. "this candle is hammer which means the market is definitely strong. Next candle is a doji which means the market is definitely in confusion" etc.

Personally, a concept I found interesting was "collapsing" the candles into each other. This was the Japanese way of (basically) seeing the higher-time frame pattern, from the same chart. I.e. collapsing 4-5 candles on a 1 minute, to see what it's looking like on a 5 minute.

It is a continued emphasis on group of candles, or patterns, and under emphasis on 'exact candle formation'.

[james_gsx]

I have seen a few charts of "collapsed candles" but never really understood them.

As a newbie I would look at each specific candle on their own and trade off that - I failed big time. Now that's obviously starting to change as I learn how to look at the big picture. There was a nice dark cloud cover on the 5min today at resistance. Turned out to be an 8pt trade if you took it too.

Back to oil....

On the daily it looks like a descending triangle is forming. Not sure which way it will breakout. And for the weekly, I'm not sure how to read that candle. Strong volume, so would that mean price fell and buyers came in to bid it back up?

[trader273]

CL looking strong:

[trader273]

[james_gsx]

I took some profit off the table today, I have a small piece remaining to see if we hit $110. If we close above $110 I will most likely add onto my position with longer term calls as we will have a successful double bottom.

[trader273]

Not a bad trade. Heating oil had the same kind of price action. One thing to watch here is that HO has not gotten above the most recent resistance level. It has the potential to hold up CL.

[trader273]

Beautiful trade. Anyone wanna argue if the volume on bar 3 was greater than that of bar 2 but not greater then that of bar 5?? yeah, didn't think so. Keep it simple is the name of this game.

[brownsfan019]

	Quote:	trader273
	Beautiful trade. Anyone wanna argue if the volume on bar 3 was greater than that of bar 2 but not greater then that of bar 5?? yeah, didn't think so. Keep it simple is the name of this game.

That's how we roll in the CC baby.

[trader273]

Well I said earlier that if these new highs were rejected I would be looking for a short, and here we are:

Heating oil also developed the same type of price action:

And Natural Gas also showed the same:

I think that all the markets are showing that the new highs, as of right now, are not sustainable.

[james_gsx]

I agree 100% I definitely think we'll test $108 if not $105-$106. I think retracing back to $100 would be unlikely, but I wouldn't be surprised considering how volatile CL is. I am glad we are involving heating oil and natural gas. Is there any way to pull up charts for gasoline?

Anyway, heres my take...