This trade shows the power of technical analysis. Notice the head and shoulders/roof top bearish formation on crude in the AM.
- With the markets headed higher and crude lagging i started looking for an opportunity to take on a short, if the markets showed a slow down, to allow for sellers to push it lower.
1. market slowed down,
2. volume picked up to the down side.
3. overhead resistance on the 15 min had been hit
4. VWAP showed resistance, meaning the big boys were selling here.
Target was the entire length of the roof top pattern.. which hit..
good luck, hope this helps..
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