Today’s trade is an Oil Jan. contract with a sell order from a price of 51.51. The price had been moving back and forth between the major support/resistance levels of the white lines at even and half dollars.
The yellow circled red bar that is reversing the mini-trend of the four consecutive green bars is our entry point with a sell stop order just below that bar at a price of 51.51. The Moving Average blue line is coming back towards the red line halting the overall upwards trend and our first price target is the Parabolic SAR red triangles just below the price.
Once the Moving Average blue line crossed the red line as denoted by the yellow X, it would be smart to stay in the trade when that next red bar took a wild swing from 51.00 to 51.50. Then we would move our buy stop order to exit the trade down when the price reached the next major support levels of the white lines at a price of 51.00 and 50.50.
As the price almost reached the major support level of the white line at a price of 50.00 then we could have moved our exit order near that point instead of waiting for the price to come back to 50.50 to lock in more profit. Otherwise, we could also follow the Parabolic SAR green triangles downward as our exit point until they were broken at relatively the same price of 50.50.
That would give us a profit of at least $1000.