Quote from Eddiemorra:
few people posted longs to me at around 98.40 as it bounced off of that last low at 98.20 an hour ago.
Anyone see any obvious reasons for a long entry there?
I was in a short and I had no levels noted in that area. I tightened my stop as price was suspended in that region for a brief period before taking off. FWIW, I exited close to 10 ticks off that low via tightening my stop, but have no idea why price found ready support there other than "too low"
Sounds like the people posting to you are very adept bottom-fishers, probably using the DOM action and the speed with which price began running up. The 1-min chart leaves an early hammer which, at an extreme (a brand new high or low is put in on volume in a strong trend), I consider a reversal signal not needing confirmation.
A common way to bottom fish a volatile instrument like CL is to put on a position as soon as price pushes to a significant new high/low, use a tight stop, and eventually catch the major reversal move. The key phrase here is "a significant new high/low", not every little 10-tick push in a middle-aged trend. You want to see a very strong breakout in a strong, mature trend before attempting this or you'll be chopped to death.
