Oil Technical Analysis Live Crude Oil Trading Charts
Oil Technical Analysis Course
Oil Technical Analysis is the science and art of forecasting future crude crude oil trading price movement based on historical crude oil trading prices combined with Oil technical indicators. Oil Technical Analysis Course - This Oil Technical Analysis study often interprets the crude crude oil trading price data by studying a oil chart and looks for oil chart patterns and oil signals for buying and selling.
The history & origin of this Oil Technical Analysis method dates back several hundred years to Japanese and Arabian markets, Oil Technical Analysis involves using mathematical manipulation of crude crude oil trading price data to optimize buy & sell points. use of this type of Oil Technical Analysis in modern computerized trading programs has become increasingly popular.
The information which the is studied and assessed is crude crude oil trading price movement so as to plan an entry or exit into a oil trade. The goal is to determine how the crude oil market is trending.
Crude Oil Technical Analysis
This Oil Technical Analysis – studies the supply and demand of a oil in an attempt to determine in what direction the crude crude oil price will continue to move in.
While oil technical analysis deals with crude crude oil trading price & oil indicators it is just a measure of investor sentiment.
What to Look For
Find the Oil Trend
The motto of oil technical analysis is: "the oil trend is your friend." Finding the prevailing oil trend will help you become aware of the overall direction and offer you better oil trading opportunities - especially when shorter-term oil market movements give conflicting trading signals.
Daily oil charts are more ideally suited for identifying long-term oil trends. Once you have found the overall direction then you generally open buy or sell oil orders in that direction.
Crude Oil Trend or Range
No matter what crude crude oil trading price is doing, it usually falls into one of these two categories. If the crude oil trading price is moving in a pattern or in one direction, you can use oil trend lines to analyze where the crude crude oil trading price should go. If the oil market seems to be bouncing back and forth in a range, you can use support and resistance lines to make note of where to open buy or sell crude oil trade orders.
One of the greatest goals of Oil Technical Analysis studies & techniques in the crude oil market is to determine whether oil will move in a oil trend in a certain direction, or if oil market will move sideways and remain range-bound. The most common Oil Technical Analysis method to determine this is to draw oil trend lines which are used by crude oil traders to determine whether or not the current direction of the oil market will continue. Many investors avoid trading in a range-bound oil market and only buy or sell oil when there is a oil trend since this makes trading more predictable.
For oil technical analysts the most important oil tool is the crude oil chart. The purpose of a oil chart is to provide a visual representation of crude oil trading price quotes (drawn on the y-axis) against time (drawn on the x-axis) for oil instrument, this oil chart is used as a basis for making predictions of the future crude oil trading price direction.
Oil Trend Lines
The direction of these oil trend lines determines the oil market direction. A oil trend line drawn moving upward represents a bullish market and a oil trend line drawn moving downward represents a bearish market.
Support & Resistance
Support & resistance levels are points on a oil chart that tend to act as boundaries. A support level is usually the trough or low point on a oil chart whereas a resistance level is the high or the peak point on a oil chart. These support and resistance levels are used as buy/sell points.
Moving Averages Oil ++Trading Technical Indicator
Moving averages oil indicator are used to show the average crude crude oil trading price of a oil instrument over a given period of time. Moving Averages are called moving because they reflect the latest average in the movement of the crude oil prices.
Crude Oil Trading Strategies
To be a successful oil trader you need to come up with a oil strategy. There is not one set Oil Trading strategy that is good for all crude oil traders. But Rather, each oil trader needs to develop their own crude oil trading strategy.
Oil Technical Analysis is the most widely used strategy in the oil market and is used to decide the entry and exit points.
Market movements have identifiable repeating crude crude oil trading price patterns that have been studied over many years providing a thorough understanding of these oil market trends and how they can be used to form the basis of a good trading crude oil trading strategy.
There are many Oil Technical Analysis tools available provided to facilitate this study
The beginner oil trader is advised to study each Oil Technical Analysis tool separately to get working knowledge of the concepts & application for each Oil Technical Analysis study. Once you understand one Oil Technical Analysis method, keep on using it while studying others. Each Oil Technical Analysis tool tends to combine well when used with other Oil Technical Analysis Tools.
Support and resistance levels are also used in many oil trading strategies. Support is defined as the level that is repeatedly seen as the bottom (floor) - when the crude crude oil trading price reaches this level it tends to bounce. Resistance level is the ceiling, the upper boundary (ceiling) that a oil instrument rarely trades above.
Support and resistance levels are valid for a period of time, until they are broken, When the oil market breaks through these support and resistance levels, the crude crude oil trading price is expected to continue in that direction. For example, if the oil market rises above the previous resistance level, it is seen as a bullish oil signal and the bullish movement should continue upwards.
Longer oil chart time frames establish more stronger support and resistance levels. Oil traders can use these support and resistance levels to determine when to enter a trade or exit an open position.
Moving averages is another common crude oil indicator used as to create oil trading strategies. Moving averages try to smooth out short term oil market price fluctuations giving a clearer picture of the crude crude oil trading price movements and trends. Oil Traders can draw SMA to determine crude crude oil trading price movement tendency to move up or down - crude oil trend.
If crude crude oil price crosses above the simple moving average then it will keep on moving upwards.
If crude crude oil trading price crosses below the SMA then it will keep moving down
These are examples of oil strategies that can be used individually or combined.
Oil Traders use two or more Oil Technical Analysis studies to determine when to open an order when both Oil Technical Analysis indicators support the same direction. If several Oil Technical Analysis indicators show that the oil market is moving towards a particular direction the a oil trader can trade with more reassurance than when he is only relying on a single Oil Technical Analysis indicator.
Fundamental analysis should also be used together to reinforce Oil Technical Analysis findings, or vice versa. A oil trader should ideally take into account two or more Oil Technical Analysis indicators when developing a Oil Trading Strategy.
Every oil strategy should provide clear guidelines about when to enter and exit a buy or sell oil trade position, how much loss can be accepted if the oil market moves in the other direction and how much profit is expected. Following these simple Oil Technical Analysis guidelines can help you become successful in crude oil.
