Today’s trade was an Oil Jan. contract with a buy order from a price of 52.63. The price had recently broken through the major support/resistance level of the white line at a price of 52.50 and had just returned back to that level.
The yellow circled green bar that closed near its high is our buy signal as that is a large bar that has a big downside wick and is reversing the downward mini-trend of the last twelve bars from a recent high. The price had also moved to an upward trend as the Moving Average blue line had crossed above the red line as denoted by the yellow X to add to the support of the major support level of the white line at a price of 52.50.
So we would place our buy stop order just above that bar at a price of 52.63. Once the price shot upwards, it went to the next major support/resistance level of the white line at a price of 53.00 and as you can see in the large yellow oval, the price bounced along the topside of that level.
The price then made a slight move a little higher and the first yellow circle was an early exit point as that small red bar closed at its low and the time was getting close to market close at 2:00 pm PST.
Otherwise, when the market opened again at 3:00 pm PST, the second yellow circle could of had you stopped out if you were using the Parabolic SAR red triangles as your stop loss. The last yellow circle also signals an exit point as the green bar spiked high but had a high topside wick showing that the price could not hold up there and you should exit under the close of one of those bars.
That would give us a profit of $650 with either a $100 loss or gain from that by staying in the trade a bit longer.