Note: In the event you’re not interested in the specific company or equity shown, pay attention to the METHOD being featured.
Last post we shared the breakout of BOIL (2x Natural Gas ETF) above the MA*. Interesting developments on BOIL.
This post we’ll share Whooph’s take on the Oil trade in UCO (2x Crude Oil ETF).
* Moving Average
Whooph shares 2 of his trades per week, bearing actionable swing trade METHODS for consistent income, and lock-it-in-NOW capital preservation tips for investors.
CRUDE OIL. Let’s hop right into the Oil trade. The principle I’ll briefly explain is good practice for traders AND investors. Preserving capital as an investor, according to Buffett is paramount. Whooph has been trading since 1999, deriving swing trade methods for consistent income, but he also invests!
Note my mark-ups in the oil UCO chart below. First glance — what do you see!
That’s right, Diverging Lines. Price vaulted happily higher, while Indicators highs suddenly diverged. I like to express this common occurrence as DISAGREEMENT. And so, what happened? Price reversed.
Burn this image into your psyche.
In this case, OIL had rallied, so in a reversal: Price SOLD. Disagreement, which happens nearly every Elliott Wave 5 in almost any timeframe, is a trigger. A heads-up! It is created BY the market, because it is what the market thinks.
Lock in your Profits
Making gains is not your primary goal, it’s KEEPING THEM.
And creating OPTIONS.
We could go into the math for investors who sold twice a year on persistent disagreement, locked in terrific gains, and on the correction, they preserved capital. More key, selling preserved the OPTION to buy lower! I won’t get into the calcs here, but I will tell you, it’s huge!
Disagreement: Burn this into your psyche.
Disclaimer:
This content is for educational, informational, and entertainment purposes only. Nothing herein should be considered as investment, business, legal, or financial advice pertaining to your specific situation, goals, needs, or risk tolerance. Ideas published by me or Whooph LLC on Whooph.com, Charlie Whooph.Substack, or Whooph Trades Publication on Substack are derived from my own experience and opinions. Please do your own due diligence, conduct your own research, and consult a licensed or certified professional before making decisions on life or legal matters, taxes, financial, investment, or health needs.