In a market with such a pronounced bias, a logical trading approach would be to identify points at which the market has corrected and is due to reverse to the upside. Such strategies are common in the stock market, which has an even more notable upside bias than oil. Generally, sharp down moves present discounted prices and buying opportunities.

Not all markets behave the same way, though, and the oil market is notoriously volatile and fickle — the epitome of false moves and head fakes. A common pattern, the outside bar, shows potential as an interesting — if sometimes counterintuitive — short-term trade setup.