[Evening Star] Doji or Evening star?

[james_gsx]

Would you consider this a doji or an evening star? Or does it really even matter as long as you read that theres a tug-of-war against resistance confirmed buy a sell off?





Thanks...

[brownsfan019]

James - for me, it doesn't really matter as it is a matter of how aggressive you want to be. In other words, you could consider a short on the doji-type candle or you can wait for additional confirmation and then get another reason to short. Obviously in hindsight you would want to be short on the doji, but additional confirmation is not a bad thing either.

Your chart actually brings up a few possible trade scenarios:



Here we see:

1) Could short on the doji (#1).
2) Could short on the bearish confirmation after the doji (#2).

Now, a trade management idea here could be to enter the trade on #1 with a % of available contracts and then add to a winning position based on #2. Just an idea.

========================= ========================= =



Taking a look at the daily James and I think we can see some overhead resistance here. Obviously $100.00 even is a MONSTER psychological number. So had you been watching this chart, I'm sure you can see a number of possible shorting opportunities when price approaches the 100.00 level. Sooner or later this level will break, but as of now, I see about 5 trades or so when price hits the 100.00 level.

[james_gsx]

I think the newbie trade right here would be to go long in hopes of it breaking $100. But you are right, with proper analysis of the chart there are several short plays around $100. I think a good risk/reward trade would be to short and have two possible targets, the first at $95 and the second at $90. The stop would be simple, just above $100.

[brownsfan019]

So the question is James, did you make MONEY from your great find here?

It's time to start cashing in on these as you found a beauty here.

[james_gsx]

I would cover here since 95 seems to be a strong support area, then wait to go long at $90 or a close above $100. I know it sounds like I'm leaving a lot on the table by saying I would buy at $90 but with the volatility of oil I'd rather keep my profits and wait for the next setup.

[brownsfan019]

	Quote:	james_gsx
	I would cover here since 95 seems to be a strong support area, then wait to go long at $90 or a close above $100. I know it sounds like I'm leaving a lot on the table by saying I would buy at $90 but with the volatility of oil I'd rather keep my profits and wait for the next setup.

So is this being done on a fake, after the fact account or is this what you did in yours? Sorry if that's too pushy, but you are doing well here James and need to make the money that is right there in front of you.

It's like waiting for a big hand to play on a high stakes no-limit cash poker table and folding them... You waited for the rockets and let it go b/c you might lose...

[james_gsx]

Fake account, not sure if my account can handle the volatility of CL.

[brownsfan019]

	Quote:	james_gsx
	Fake account, not sure if my account can handle the volatility of CL.

That's cool.

Remember there are other ways to play oil - an ETF perhaps.

Key here is doing it with real money. Even just one share for the sake of doing it. I know it doesn't seem like much, but well worth it.

[james_gsx]

I will make sure to find the ETF that follows oil and I'll start taking those trades. I used to trade a lot, several hundred trades per quarter. When I switched over to futures I just sort of stopped... But at least I'm doing it again

[brownsfan019]

	Quote:	james_gsx
	I will make sure to find the ETF that follows oil and I'll start taking those trades. I used to trade a lot, several hundred trades per quarter. When I switched over to futures I just sort of stopped... But at least I'm doing it again

You just have to get back in the game. We've all been there.