• 4 minutes China goes against US natural gas
  • 12 minutes WTI @ 67.50, charts show $62.50 next
  • 15 minutes Saudi Fund Wants to Take Tesla Private?
  • 1 hour Downloadable 3D Printed Gun Designs, Yay or Nay?
  • 6 hours Rattling With Weapons: Iran Must Develop Military To Guard Against Other Powers
  • 12 hours Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 1 hour Russians hacking vs U.S., Microsoft President: Russians Targeting All Political Sides
  • 1 hour VW Receives Massive Order Of 1,600 All-Electric Trucks
  • 9 hours Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 13 hours CO2 Emissions Hit 67-Year Low In USA, As Rest-Of-World Rises
  • 6 hours Batteries Could Be a Small Dotcom-Style Bubble
  • 16 hours The EU Loses The Principles On Which It Was Built
  • 21 hours Starvation, horror in Venezuela
  • 8 hours Corporations Are Buying More Renewables Than Ever
  • 24 hours How To Explain 'Truth Isn't Truth' Comment of Rudy Giuliani?
  • 22 hours The Discount Airline Model Is Coming for Europe’s Railways
Alt Text

WTI Set For Longest Weekly Losing Streak Since 2015

West Texas Intermediate crude was…

Alt Text

Keystone XL Delayed…Again

The Keystone XL saga has…

Alt Text

The Real Reason Behind The Next Oil Squeeze

An oil supply squeeze may…

Martin Tillier

Martin Tillier

More Info

Trending Discussions

Two Tactics For Trading “Off the Chart”

Rig

Oil’s sustained rise over the last six months has created an interesting dilemma for many traders. It has taken WTI, for example, to levels not seen since April of 2015, so for those looking at a 1-year chart prices are quite literally “off the charts”. Most traders, myself included, use recent levels of support and resistance to plot both entry and exit points for trades, at least to some extent, so off the chart pricing is problematic. You could go back to that 2015 action, but time decreases the relevance of chart levels, so for short-term trades that is not helpful. What, then, is a poor trader to do?

First, you need to understand the nature of chart levels and what makes them significant. When you detach yourself from a trading mentality and think about it, there should be no reason why what happened around a particular price point in the past will influence what happens in the present…except for one thing. Support and resistance levels are self-fulfilling prophecies. The significance of those levels rests in the fact that enough people believe they have significance. What stops a move down is the appearance of buyers, or sellers in the case of a move up, and past action at a certain level attracts new entrants into the market. So, in effect, support, resistance and pivot levels matter because they matter.

The trick to off the chart trading, therefore is to identify other things that potential buyers and sellers may regard as significant,…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin

Trending Discussions





Oilprice - The No. 1 Source for Oil & Energy News