The bearish pattern shown won’t win any beauty prizes, but it’s probably good enough for government work. Notice how yesterday’s selloff tripped a short at 54.19 (the green line). We typically ignore such signals, since they will have attracted more attention than we should prefer. Instead, I’ll suggest shorting any rally that comes back up to the green line, provided the way in which it does so meets our criteria for a ‘mechanical’ trade. I’ve sketched out a few hypothetical bars to illustrate, but if you’re unclear on how to initiate this trade, just ask in the chat room.
