Oil Trend Trading Indicators

Pivot Points are used by crude oil traders to find support and resistance levels based on the previous day's crude crude oil price action.

This oil indicator is a very useful tool that use the previous bars' highs, lows & closings to project support & resistance levels for future bars.

This oil indicator provides an idea of where key support and resistance should be. Place the pivot points on your oil charts and crude crude oil price will bounce off one of these levels. These levels are used by crude oil traders to determine market tops, market bottoms or oil trend reversals.

• Daily pivots points are calculated from previous day's high, low, close

This oil indicator is shown below

Technical Analysis in Oil Trading

The central pivot itself is the primary level, which is used to determine the trend

The other support & resistance levels are also important in calculating areas that can generate significant market movements.

This oil indicator can be used in 2 ways

The first way is for determining overall Oil trend: if the pivot point is broken in an upward movement, then the oil market is bullish, and vice versa. However, pivot levels are short-term oil trend indicators, useful for only one day until they need to be recalculated.

The second method is to use these points to enter and exit the oil markets. This oil indicator is a useful tool that can be used to calculate the areas that are likely to cause crude crude oil price movement.

These points should be used conjunction with other forms of technical analysis such as Moving averages, MACD and stochastic oscillator.

This oil indicator can be used in many different ways. Here are a few of the most common techniques for utilizing them.

Oil Trend Direction: Combined with other technical analysis techniques such as overbought/oversold oscillators, volatility measurements, the central point may be useful in determining the general trending direction of the crude oil trading market. Trades are only taken in the direction of the Oil trend. Buy signal occurs only when the oil market is above the central pivot and sell oil signal occur only when the oil market is below the central pivot.

Oil Trading Price Breakouts: A bullish signal occurs when the oil market breaks up through the central pivot or one of the resistances (typically Resistance 1). A bearish signal occurs when the oil market breaks down through the central point or one of the supports (typically Support 1).

Oil Trend Reversals:

• A buy oil signal occurs when the crude crude oil price moves towards a support level, gets very close to it, touches it, or moves only slightly through it, and then reverses and moves back in the opposite direction.

• A sell oil signal occurs when the crude crude oil price moves towards a resistance level, gets very close to it, touches it, or moves only slightly through it, and then reverses and moves back in the opposite direction.

Stop loss and/or Limit Profit Values Determined by Support/Resistance: This oil indicator might be potentially helpful in determining suitable stop loss and/or limit profit placements. For example, if trading a long break out above the Resistance 1 it may be reasonable to position a stop loss.

Combining with Moving Average Crossover System

A good indicator to combine and trade reversal oil signals is the moving average crossover which can be used to confirm the direction of a reversal oil signal.

An investor can then open an order once these 2 indicators give a signal in the same direction.

Moving Average Crossover Technique

Moving average crossover method that can be combined with this indicator to come up with a oil system for generating buy & sell oil signals.

To download Pivot points:

https://c.mql5.com/21/9/pro4x_pivot_lines.mq4

Once you download it open it with MQL4 Language Editor, Then Compile it by pressing the Compile Button Key & it will be added to your MetaTrader 4.

NB: Once you add it to your MetaTrader 4, the indicator has additional lines named Mid Points, to remove these additional lines open MQL4 Language Editor(short cut key-board key – press F4), & change line 16 from:

extern bool midpivots = true:

to

extern bool midpivots = false:

Then Press Compile again, and it will then appear as is exactly shown on this site.