Crude oil has been rallying for a significant amount of time, now being traded at 73.50 level. At that level we do have the completion of a bearish butterfly pattern. Trading harmonics in the weekly chart may be very expensive since you have to use huge stops.
A great way to trade harmonics in the higher timeframes is to switch to the lower timeframes after the completion and watch for a setup with a much smaller stoploss. In the 240min chart we do have a head and shoulders pattern, with price having already broken the neckline, reversed and now testing it.
RSI in the weekly chart show a clear bearish divergence, a good sign that this uptrend is losing its steam.
Sell USOil at current level, placing stoploss above the right shoulder and you are good to go. As for tp you may either aim for previous structure or go with the 0.382 and 0.618 fib retracements of the AD wave.
240min chart
A great way to trade harmonics in the higher timeframes is to switch to the lower timeframes after the completion and watch for a setup with a much smaller stoploss. In the 240min chart we do have a head and shoulders pattern, with price having already broken the neckline, reversed and now testing it.
RSI in the weekly chart show a clear bearish divergence, a good sign that this uptrend is losing its steam.
Sell USOil at current level, placing stoploss above the right shoulder and you are good to go. As for tp you may either aim for previous structure or go with the 0.382 and 0.618 fib retracements of the AD wave.
240min chart
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Massive drop of price. It looks like it's now correcting. Most likely it will keep falling to the down. Move your stops at least to breakeven so you eliminate your initial risk
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Exactly to the pip..!