Draw a Oil TrendLine on a Chart

How to Draw a Oil Trend-Line on a Chart - How to Draw Oil Trend Lines on Crude Oil Trading Charts

Principles of How to Draw a Oil Trend Line on a Chart

1. Use oil candle charts to draw oil trend lines

2. The points used to draw a oil trend line on a crude oil charts are along the lows of the crude crude oil price bars in a bullish crude oil trading market. An upward bullish oil trend is defined by higher highs & higher lows.
3. The points used to draw a oil trend line on a crude oil charts are along the highs of the crude crude oil price bars in a bearish crude oil trading market. A downward bearish oil trend is defined by lower highs and lower lows.
4. The points used to draw oil trend lines on the crude oil charts are the extremes points - the high or the low crude crude oil price. These extremes are important because a close beyond the extreme chart points tells oil traders the oil trend of oil might be changing. This is an entry or an exit oil signal.
5. The more often a oil trend line on a oil chart is hit but not broken, the more powerful its oil trend signal.

Example 1: How to Draw a Oil Upward Oil Trend Line on a Chart

To draw an upward oil trend line on a oil chart use two support points in a bullish upwards oil trend so as to draw the upwards oil trend line and then extend the oil trend line as displayed below. The upwards oil trend line on a oil chart will show the general direction of crude oil prices and as long as crude crude oil price is above this upwards oil trend line then the upwards oil trend will remain intact - bullish upwards crude oil trend.

If crude oil prices move below the upward oil trend line which is the support level for the bullish upwards oil trend then crude oil traders should close all their open crude oil trades - because this might be a oil trend reversal oil signal. In an upward oil trend crude crude oil price should generally stay above the support level which is marked by the upwards oil trend line on the crude crude oil charts.

Draw a Oil Up TrendLine on a Chart in Crude Oil Trading

How to Draw an Upward Oil Trend Line on a Chart - How to Draw a Oil Trend-Line on a Chart

Example 2: How to Draw a Oil Downward Oil Trend Line on a Chart

To draw a downwards oil trend line on a oil chart use two resistance points in a bearish downwards oil trend so as to draw the downwards oil trend line and then extend the oil trend line as displayed below. The downwards oil trend line on a oil chart will show the general direction of crude oil prices and as long as crude crude oil price is below this downward oil trend line then the downward oil trend will remain intact – bearish downward crude oil trend.

If crude oil prices move above the downwards oil trend line which is the resistance level for the bearish downward oil trend then traders should close all their open crude oil trades - because this might be a oil trend reversal oil signal. In an downward oil trend crude crude oil price should generally stay below the resistance level which is marked by the downward oil trend line on a crude oil chart.

Draw a Oil Down TrendLine on a Chart in Crude Oil Trading

How to Draw a Downward Oil Trend Line on a Chart - How to Draw a Oil Trend-Line on a Chart