crude futures trade idea – the cullen outlook – formation finder
This is a sample of Brian’s email newsletter, The Cullen Outlook.
This is from the Formation Finder portion from June 17th.
August CRUDE OIL:
(GCLQ6 is the standard)
(QMQ6 is the mini)
Let’s talk about the candlestick formation called the DARK CLOUD COVER:
Follow me on this one. There is a chart below to reference
- It is a bearish signal that alerts traders to a possible reversal
- It occurs at the top of a bullish trend
- There is a big up day that is followed by a big down day. (see highlighted days)
- Think of it as 2 spires at the top of a bull run, (1 up / 1 down).
- The 2nd days close MUST be at or below the previous up day’s trading range.
- Look for the confirmation candle the next day to take out the lows of the 2 twin spires to get involved (see blue arrow)
Last week we noticed a DARK CLOUD COVER on the bump that we had above 51.00
THAT SAID, the exact opposite of a Dark Cloud Cover is called a PIERCING DAY.
And we just so happen to be forming the 2nd candle of that formation today!
Check out the August Crude Oil chart…
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