Today’s trade was an Oil Feb. contract with a buy order from a price of 45.58. The price had been moving back towards an upwards trend as the price bounced along the major support/resistance level of the white line at a price of 45.50.
The yellow circled green bar is our buy signal as that bar closed near its high and it is reversing the mini-trend of the previous seven bars from a recent high. It is also moving with the overall trend as the Moving Average blue line crossed above the red line, as denoted by the yellow X, and has the major support of the white line at a price of 45.50 to support a price move higher.
Once in the trade the price immediately broke through the most recent high and went on to reach and break through the next obvious price target of the major support/resistance level of the white line at a price of 46.00.
After that point we would look to exit the trade once the price move had stalled and bars started to close red with long topside wicks. The yellow oval shows where we would exit the trade if we used the close of the bars as out stop loss guide.
That would give us a profit of at least $550.