The above daily chart shows the price of crude oil, one of the most technical markets where levels of support and resistance tend to be respected most of the time. And despite all that, one can see how the market produces false signals, such as the sell signal at the blue bar level. Also this market tends to have variable daily ranges, where not only fixed stop loss orders do not work, but also fixed profit targets do not work either. Both risk control and profit targets need to be dynamic and specifically tailored to each trading week and day. In this highly technical market one would be better off letting the market settle for the day, and make the decision to take profit or close a losing trade right at the daily close. If price targets need to be set in place, these have to refer to previous levels of support and resistance, ideally as seen on the weekly chart, and ignoring the highs and lows of the past few days.
