Trading Oil Define a Oil Trend-
Definition of Oil Trends
To identify a oil traders need to use oil tools that help in determining & identifying a crude oil trend.
The most popular oil tool to identify a oil trend is: Crude Oil Trend-lines
A oil trend line depicts the points of support and resistance for the crude oil trading price, depending on the direction of the crude oil market.
For an upwards moving oil market oil trend the oil trend line will shows the points of support
For a downward moving oil market oil trend the oil trend will show the areas of resistance
These oil trend lines are mainly used by many oil trader to determine these resistance & support levels.
Oil Trendline is a straight line that connects two or more crude crude oil trading price points on a oil chart and then extends into the future to act as a level of support or resistance. There are two types of oil trend: upward oil trend and downward trend. Oil Trend line is an aspect of crude oil trading analysis that uses line studies to try and predict where the next crude crude oil trading price move will head to. A oil trader should know how to draw and interpret the trading signals generated by this oil trend line tool.
The basis of this oil trend line analysis is based upon the idea that markets move in trends. Oil trend lines are used to show 3 things.
- The general crude crude oil price direction - upward or downward.
- The strength of the current move – and
- Where future support and resistance will be likely located
If oil trend lines forms in a certain direction then market usually moves in that direction for a period of time until a time when the oil trend-line is broken.
Plotting these oil trend lines on a oil chart shows the general oil trend of the oil market which can either be upward or downward.
Shown Below is an example of how to draw these oil trend line on crude crude oil charts
Oil Trend-Line Guide:How to Draw & Trade Upwards Move Using Oil Trend Lines
Oil TrendLine Tutorial: How to Draw & Trade Upward Move Using Oil Trend Lines
Oil TrendLine Guide: How to Draw & Trade Downwards Move using Oil Trend Lines
Oil TrendLine Tutorial: How to Draw & Trade Downward Move using Oil Trend Lines
