US Oil Analysis on M30 & M15: after consolidation, move expected
Hello everyone.
My name is François Normandeau.
This is a US Oil market analysis for ADX-BRIEFING.
Here is a longer-term snapshot, in order to better understand the wider context.
Now, zooming in to a smaller time-frame...
On both sides of this screen (seen in this TradingView Idea): US Oil .
M30 on the left (30-min chart) and M15 on the right.
On the left side, two main indicators: modified MACD and modified ADX .
The key feature of this ADX is that it tells us when the market is consolidating
and when the market is ready for a substantial move.
If the ADX signal line is descending and under its moving average, we have an ongoing consolidation.
On the other hand, if the ADX signal line is near the bottom, then crossing its moving average,
going upwards, we now have a confirmed end of consolidation and a move.
Once we see a confirmation for the end of a consolidation, we then look at the MACD indicator above it
in order to time the entry and exit.
Here, even though the MACD indicator gave 3 signals for a confirmed trade, when using M30,
the ADX only confirmed 2 out of 3 (the 2 green rectangles are the confirmed moves).
As of now, ADX is near the bottom of the indicator window and could soon cross over,
thereby confirming a new move on M30.
At the same time, MACD is not confirmed a sell trade or a buy trade.
If we now look on the right side of the screen, we see that the 2 momentum indicators we are using,
have confirmed, on M15, a bearish trend .
The bottom indicator is in the sell zone (lower than the red horizontal line)
and the indicator above it has gone downwards, traversing the black neutral "00" line,
entering negative territory.
At ADX-BRIEFING, we are expecting a substantial down move either on Wednesday, December 2
or on Thursday, December 3, 2020.
We will keep an eye on US Oil , as this has been our main market for the last 20 years.
Wishing you a great week,
― François Normandeau
Founder of ADX-BRIEFING & Institutional Research Director
My name is François Normandeau.
This is a US Oil market analysis for ADX-BRIEFING.
Here is a longer-term snapshot, in order to better understand the wider context.
Now, zooming in to a smaller time-frame...
On both sides of this screen (seen in this TradingView Idea): US Oil .
M30 on the left (30-min chart) and M15 on the right.
On the left side, two main indicators: modified MACD and modified ADX .
The key feature of this ADX is that it tells us when the market is consolidating
and when the market is ready for a substantial move.
If the ADX signal line is descending and under its moving average, we have an ongoing consolidation.
On the other hand, if the ADX signal line is near the bottom, then crossing its moving average,
going upwards, we now have a confirmed end of consolidation and a move.
Once we see a confirmation for the end of a consolidation, we then look at the MACD indicator above it
in order to time the entry and exit.
Here, even though the MACD indicator gave 3 signals for a confirmed trade, when using M30,
the ADX only confirmed 2 out of 3 (the 2 green rectangles are the confirmed moves).
As of now, ADX is near the bottom of the indicator window and could soon cross over,
thereby confirming a new move on M30.
At the same time, MACD is not confirmed a sell trade or a buy trade.
If we now look on the right side of the screen, we see that the 2 momentum indicators we are using,
have confirmed, on M15, a bearish trend .
The bottom indicator is in the sell zone (lower than the red horizontal line)
and the indicator above it has gone downwards, traversing the black neutral "00" line,
entering negative territory.
At ADX-BRIEFING, we are expecting a substantial down move either on Wednesday, December 2
or on Thursday, December 3, 2020.
We will keep an eye on US Oil , as this has been our main market for the last 20 years.
Wishing you a great week,
― François Normandeau
Founder of ADX-BRIEFING & Institutional Research Director
