Note in this chart that momentum seems to favor the short side. This shows crude oil on the 3 minute and tick charts since 10:30 am EST. This also demonstrates why I only trade one direction. Right now, until the trend changes direction (crude is currently in a downtrend on the daily chart-- not shown), I will only trade crude oil on the short side.This chart is a good example why. Since crude oil prices have been falling strongly for several weeks, it makes sense that the greatest profit opportunity is in selling black gold, not buying it. Note in this chart that the red candles pointing downward are much more forceful than the red/green mixed candles that moved prices higher. Prices on this chart move downward very rapidly and with several successive red candles without any green ones in between. However, when prices move higher, they do it with mostly green or doji candles, but with several red candles intermixed. Prices only move higher laboriously, like spoiled children that are forced to do something, but who only go kicking and screaming. Why swim upstream when the flow is downward? There is good reason for this, as we would be wise to learn this lesson:
Don't fight the trend!
