Crude Oil had a nice bounce yesterday. Rallying from a low of around $45.80 or so, up to about $50 at the start of the Asia session in trading on the March contract.
Just something to know about me.
I like trends.
And I respect trends.
Trends are a bit like locomotives. Once they really get moving in a particular direction, they can get pretty hard to stop. Sure … the railroad track may slightly bend from time to time. But they usually don’t bend by a whole lot. Again, this is for folks that are new to the markets, and new to trading … (veteran traders have heard this a billion times), but there is an old expression …
“The trend is your friend, until the trend comes to an end”
Another variation is
“The trend is your friend, until the trend starts to bend”
Now don’t get me wrong. A small periodicities, very, very small time frames, there is money to be made by going long. Again … I am speaking through the lens of a self-directed, directional swing trader here, but …
I ain’t buying this bounce in Crude Oil.
I never go in, trying to find the tick low, on the first bounce.
Never on the first bounce.
May the short-term low have been put in for Oil prices on Tuesday?
I don’t need to know. If it was? Then I will wait for the trend to show me that has truly changed, and increase my likelyhood for being correct. But I am never out there trying to find … ‘the tick low‘
Because I never go in, on the first bounce …