Follow up to RBOB Futures trade!!!

As I commented on my RBOB futures trade, I was stopped out but felt good about the trade in general. I wanted to take a moment to put into perspective what I was seeing on the chart and what indicator I just added to my arsenal as a confirmation to what I saw on the chart.

If you recall, the primary reason that I put on the trade was do the fact that I thought it was oversold as it had been down 12 of the last 14 session when the trade was initiated. Today I added the RSI (relative strength index) to my charts as a confirmation for such oversold/overbought conditions.

I am not one to add tons of indicators to my charts as I like to keep things pretty simple. But I really like this one and I like the methodology behind it.

So anyways lets take a look at the chart:

Notice the RSI indicator on the bottom of the chart screen shot. As you may or may not know, as the RSI approaches 30 it indicates oversold conditions and may indicate a relief rally is coming, and as it approaches 70 it means the opposite. So you can see that this indicator would had been confirmation to my thesis had I had it on my chart.

Looking back it looks like my stop was just a little too tight for this trade as I got shaken out just below my stop of 1.7950 only for it to do exactly as I predicted.

Anyways I just thought I would share what I was thinking.