- Crude oil daily chart shows a possible ascending triangle pattern. Price is moving in a range. If the rising trend line is held an upper breakout is possible. If the trend line is broken price will remain inside the range. Weakness only if the cloud and 23.6% fib level gets broken.
- Apple near the apex of a contraction pattern. Price likely to make a big move soon.
- 100 Day SMA is the crucial support. Apple bears need price to sustain below this line and the pattern support line shown above.
- Trying to explain how New and experienced traders look at an indicator.
- First chart shows RSI reaching oversold zone Here new traders anticipate a reversal without seeing or confirming one Then Price makes a new low. New traders stop loss hits here and smart money makes a buy. If you see the second chart the oversold RSI trade did give profits but not before shaking out new traders.
- Having Said that in a down trend if you Jump in on a new low thinking smart Money is going to come in your pain will increase as in a trending market the oversold or overbought condition sustain for a longer time. That's why you need to confirm reversals always with price action.
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