FX.co ★ bradtke.owen | CL/Crude Oil

Good day colleagues, at this moment I have approached the queue to analyze the #CL pair on the M5 timeframe. I trade based on a strategy that I have tested (and not only me), which uses the well-known Relative Strength Index indicator with default settings. As you can see, everything is quite simple, but based on my experience and testing - reliable. Observing the attached image, we can notice that the RSI indicator has reached the 70 zone, which is a signal of weakening bullish momentum. Perhaps it is time for a correction or even a trend reversal. This is also confirmed on the price chart by the level of 82.97. I enter the trade with two orders. The first order is placed away from current prices, and the second, in case of a slight pullback, I place on M1, where we sell at the market price. I also set a profit target at a 1 to 2 level. Like any normal trader, I aim for gradual profit increase, so I do not set too high targets, as I build my trading algorithm around the selected timeframe. For the latest extreme, we place our stop order, the size of which is 15 points, which is the optimal average value for this timeframe! Have a great trading day and all the best in your trading endeavors!