Trap move on 5 min CL chart

Trap_move_on_oil_5_min_chartIt was business as usual for the big operators on the 5 minute chart for oil, with the trap move clearly evident immediately after the open of the major US markets. Oil prices were initially taken higher, and outside the average true range on this timeframe, with the volatility indicator being triggered as a result. This was a classic warning signal, and one which that was duly validated with the price action immediately reverting inside the spread of the candle. With no follow through, and a consequent bearish reversal, this left many bullish intraday oil traders trapped in weak positions.

Since then we have seen oil prices weaken further, and move below the volume point of control and begin to test the $43 per barrel area intraday.

By Anna Coulling

About Anna 1054 Articles
Hi – my name is Anna Coulling and I am a full time currency, commodities and equities trader. I have been involved in both trading and investing for over fifteen years and have traded many different financial instruments, from options and futures to stocks and commodities. I write and publish articles ( mostly for free ) for UK and international publications on a wide variety of financial issues, and in particular I enjoy helping others learn how to invest and trade.

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