Trader’s Narrative

Petrochina gapped down below the $109 support area (on the daily chart) and put in a down first candle. The second candle was even more negative being a wide ranging candle that closed almost at its low. This was the expansion phase.

The next two candles were both inside candles and they were each narrower than the previous one. After, price broke down and expanded again (to the downside). A simple trailing stop like above the previous candle’s high, would have kept you in for a nice trade.

Eventhough you may trade on a smaller time frame, like 10 minute intra day charts, it still is of great help to be aware of support and resistance levels on the daily and even weekly charts.