Crude Oil Trade:

Click on chart to enlarge.

This chart shows the recent trade in crude oil. We entered as the price broke lower around 49.20 at the end of April and held until stopped out, taking half the profit when the price reached 47.20. The remaining half of the trade was held until stopped out. A nice 0.9R profit.

Key points to note; the initial thrust down started in mid April towards the lower channel, then we had a pullback lasting about a week, before price broke to the downside once more.

​As we can never predict how far a market will move, profit and stop levels are essential and must be decided before entering the trade.