Technical Analysis Consolidation Crude Oil Trading Chart Pattern in Oil

To trade consolidation oil chart patterns in oil traders need to learn about the technical analysis of consolidation oil chart pattern.

Consolidation Oil Trading Patterns

Consolidation crude oil trading chart patterns are oil chart patterns with converging oil trend lines that form a crude oil price consolidation period.

The technical buy point from a consolidation oil chart pattern is the upside breakout of crude oil price

while a downside breakout of crude crude oil price is a technical sell oil signal.

Ideally, a market breaks out from a symmetrical triangle prior to reaching the apex of the triangle.

Oil Trend-lines can be drawn connecting the lows & highs of the consolidation phase, the oil trend lines formed are symmetric and converge to form an apex.

A crude crude oil price breakout should occur somewhere between 60-80% into the consolidation oil chart pattern - triangle oil pattern. An early or late breakout is more prone to failure, and therefore less reliable.

After a crude oil price breakout the apex forms support and resistance levels for the crude crude oil price. Oil Price that has broken out of the apex should not retrace past the apex. The apex of the consolidation oil pattern is used as a stop loss setting area for the open Oil trades.

When these consolidation oil chart patterns form we say that the Oil market is taking a break before deciding the next direction to take.

These consolidation oil patterns form when there is a tug of war between the buyers and the sellers & the crude oil market can not decide which way to move.

Oil Trade a Consolidation Pattern? - Technical Analysis Consolidation Crude Oil Trading Chart Pattern in Oil?

However, this consolidation oil chart pattern cannot go on forever & just like in a tug of war one side eventually wins, looking at the crude oil chart examples displayed below see how the oil consolidation oil pattern eventually had a crude oil price breakout & moved in one direction.

Oil Trading Consolidation Crude Oil Trading Chart Pattern Oil Trading Price Breakout Downwards - Sell Oil Trading Signal

Oil Trading Consolidation Crude Oil Trading Chart Pattern Oil Trading Price Breakout Upwards