Trading on Multiple Crude Oil Trading Charts Oil Trading Position Trading Strategy
Oil Chart Time Frames
Position Oil Traders
These group of oil are the investors that hold on to their trades for weeks or months. With the objective of making a large number of pips, 300 - 1,000 pips.
Position oil trader using the daily oil chart time frame wants to go short, checks weekly oil chart time frame, weekly oil chart time frame looks like the one below, since weekly oil chart shows the oil trend is going down, then decides from this technical analysis it's okay to sell.
Oil Trading Position Trading on Multiple Crude Oil Trade Charts - Chart Time-frames
Oil Position Traders using technical analysis use oil charts to try & attempt to predict the movement of crude crude oil price on the crude crude oil charts.
Oil Trading Position traders will sometimes use two or more oil chart time frames so as to determine the long term oil trend & short term crude oil trend.
How to Define A Oil Price Oil Trend for Position Trading
Using a oil system that has Three indicators - Moving Average Crossover System, RSI & MACD and using simple rules to define the crude oil trend. The trading rules are:
Upwards Crude Oil Trend
Both MAs Moving Up
RSI above 50
MACD Above Centerline
Downwards Oil Trend
Both MAs Moving Down
RSI below 50
MACD Below Centerline
Multiple oil charts timeframes analysis equals using 2 chart time-frames to trade oil - a shorter oil chart timeframe used for trading and a longer chart timeframe to check the oil trend - chart time frames that you choose for crude crude oil price action with will depend on the type of trader you are: for Position Traders the chart time frames used for trading will be an example of daily oil chart time frame and weekly crude oil chart time-frame.
Since it is always good to follow the oil trend when oil Position Trading, in Multiple Chart Timeframe Analysis, the longer weekly oil chart time frame gives us the direction of the long-term oil trend when Position trading using the daily Crude Oil Chart Time-frame.