To kick off this trading week, the WTI Crude Oil chart has generated a great looking pre-cursor for a breakout that we wanted to share with the rest of you Price Action traders. If you have a look at the Crude Oil chart above you will see last week close with a Cascading Inside Day setup, meaning Inside Days within Inside days. These type of setups generally look like Price Action Squeeze formations on the lower timeframes.
The chart conditions here look very stable, a nice bullish trend is in play at the moment with no signs of trend exhaustion, we only want to trade in the direction of trends like this so we are anticipating a bullish breakout of the Cascading Inside Days. Also note that price is now resting on a swing level on the daily chart testing it as support, if Price Breaks breaches the high of the double Inside day setup Price Action traders could considers going long to catch another extension of this trend.
If you’re not sure how to trade Price Action setups like this, check out the Price Action Protocol.