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High Probability ABC reversal Setup in Crude Futures

High Probability ABC reversal Setup in Crude Futures

High Probability ABC reversal Setup in Crude Futures

10 August 2020 Trade Setup

ABC Reversal off 42.19 resistance zone to initial projected 618 target 42.01 Risk:Reward 2:18 9R Trade

Was looking for a lower high failure against 42.19-22 resistance (prior support) for a possible ABC move targeting initially 618 projection at 42.01 level, followed by 100% symmetrical move as per the attached chart.

As price approaches 42.19 level on lower volume, I could see Cumulative Delta volume divergence & heavy selling as buyer being absorbed by sellers against that level. sellers continue to press as price taking out prior bar low and making lower lows lower high on 1 and 5 min charts towards initial target.

Stop was at 42.20 with entry at 42.18 targeting 42 round number to clear stops below 42.02 prior swing low. which gave me a great Risk :Reward setup of 2t:18t profits =9R

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