Crude went into a sideways range on 24th Jul after the big breakdown from a H&S pattern on 19th Jul (refer our earlier post here). On 25th Jul, the downtrend continued in the early part of the day with the low of the prior day taken out, however, crude turned sideways by late afternoon and then formed our perfect Bullish Setup 6 - Triple Falling Bottom on C5 (2H candle that ends at 7PM IST).
This setup signifies a sell failure with a Win Ratio >85%. Read all about it by clicking o the hyperlink above. There was also a confluence with a double bottom from 2 days back, making it a high conviction trade. In any case, sell failure trades are strong trades that can go in the other direction vey fast as they catch the traders on the wrong foot.
Lets look at the chart which has annotations that are self explanatory.
(Fig 1.1 - Triple Falling Bottom on Copper Futures)
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