Chart of the Day - Tuesday, March 14th, 2023

Today’s Chart of the Day was shared by Brian Shannon (@alphatrends). Brian points out that Crude Oil Futures are currently "pinched" between two key Anchored VWAPS. Brian has an entire chapter on trading the "Pinch" in his most recent book, Maximum Trading Gains with Anchored VWAP. A Pinch occurs when price trades into a narrow range between two converging AVWAPs. In this case, Crude has been rangebound for several months between the Covid low AVWAP (green) and the AVWAP from the June 2022 highs (red). In the book, Brian explains; "Think of the pinch like squeezing a spring together, the energy gets compressed until the spring is let go and an energetic move follows." A break below the lower AVWAP (around $68.80) would serve as a short signal, while a break above the upper AVWAP (around $86.30) would serve as a buy signal.