How Do I Read Oil Trading Price Action in Oil?

Oil Trading Analyze Oil Trading Price Action in Oil

Oil price action is the analysis of crude trading price movements that are drawn on crude oil charts.

Oil price action analysis uses line studies or crude trading price action patterns to try and determine the trend of the crude trading price chart.

Oil price action oil signals can also be combined with oil systems that can be used to determine what direction of trading to take.

Pin Bar Crude Trading Price Action Strategy

A pin bar is a trend reversal oil signal on a crude trading price chart which shows an obvious change in crude oil market sentiment during that period.

This pin bar crude trading price action set up has a long tail with the closing crude trading price near the open. The pin bar oil chart pattern looks like a pin thus the name Pin Bar - forms after an extended trend move up or down.

This pin bar oil chart pattern - oil trend reversal is confirmed after market closes below the candle that precedes this crude trading price action pattern. Below the pin bar oil chart pattern reversal setup is confirmed after the crude oil market crude trading prices closes below the blue oil candlestick that preceded this pin bar crude oil candle.

Crude Trading Price Action 1-2-3 Method in Oil

Oil Price action oil strategy is the use of only crude trading price charts to oil trade Oil, without the use of technical oil chart indicators. When oil with this method, candlestick oil charts are used. This crude trading price action oil strategy uses lines and pre-determined crude trading price patterns such as the 1-2-3 crude oil price action pattern that either develops as one crude trading price action pattern or series of crude trading price action setups.

Traders use this crude trading price action oil strategy because this oil analysis is very objective and allows a trader to analyze crude trading price market moves based on what they see on the crude oil charts and crude trading price movement analysis alone.

This crude trading price action oil strategy is used by many oil traders: even those that use technical oil indicators also integrate some form of crude trading price action in their crude trading strategy.

Crude Trading Price Action 1-2-3 Break-out Oil Trading Strategies

This crude trading price action strategy uses three chart points to determine the crude trading price break out direction of crude oil. The 1-2-3 crude trading price action trading method uses a peak and a trough, these oil chart points forms oil chart point 1 & oil chart point 2, if crude trading price moves above the peak the oil signal is interpreted as buy oil trading signal, if crude trading price moves below the trough the oil signal is interpreted as a sell oil signal. The crude trading price break out of oil chart point 1 or oil chart point 2 forms the third oil chart point.

Oil Trading Price Action 1-2-3 Break-out Strategy Oil Trading Example

Combining Oil Trading Price Action Trading Strategy With other Oil Indicators

Good oil indicators to combine crude trading price action crude trading price action patterns with are:

• RSI Technical Indicator

• Moving Average Technical Indicator

Traders should use these two oil indicators to confirm if the direction of the crude trading price action breakout is in line with the oil trend direction shown by these two oil chart indicators. If the direction is also the same as the direction of these indicators then crude oil traders can open a oil trade in direction of the oil signal. If not traders should not open a oil trade as there is more likely a chance that this oil signal may be a oil whipsaw.

Just like any other oil chart indicator in Oil, crude trading price action oil strategy also has whipsaws and there is a requirement to use this crude trading price action oil strategy as a combination with other oil signals as opposed to just using this crude trading price action oil strategy alone.

Combining Oil Trading Price Action Trading Strategy other Indicators

How Do You Read Oil Trading Price Action in Crude Trading