We have a possible Type Two Sell setting up in Crude Oil today on the Daily chart. We hit the MOB from the previous 3 yesterday, which happened to be where the time hash mark was showing in the MOB. Today's bar made a higher high, as well as a higher low. That qualifies it to be a Buyers Bar. However, if we observe the internals of the bar, we notice that the Close is below the Open, and the Close (ever so slightly) is below the Midpoint of the bar's range. Thus, the bar exhibits two forms of buying, but also two forms of selling. We often see these types of bars at reversal points on the chart. While it's not time to short it yet, it is time to start PREPARING to short it!
Be prepared!
nate mccartney
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