Oil Trading 20 Pips Oil Price Range Moving Average Strategy
The 20 pips crude trading price range moving average oil strategy is used on the 1 Hour oil chart and 15 minute oil chart. On the 1 hour and 15 minutes oil chart time frames we use the 100 and 200 simple moving average crude oil technical technical indicator.
Both the 1 Hour and 15 minute oil chart time frames will use the 100 and 200 SMA (Simple Moving Average Indicator) to determine the direction of the Oil market trend.
The 1 Hour oil chart timeframe checks the long term direction of the Oil trend, upward or downward trend, depending on the direction of the moving averages. All crude oil trades opened should be opened in this oil trend direction.
We then use the 15 minute oil chart to find the optimal point to enter crude oil trades. Oil trades are opened only when the crude trading price is within 20 pips range of the 200 simple moving average, if crude trading price is not within this pip range crude oil trades are not opened.
Oil Uptrend - Bullish Market Trend
To generate buy bullish oil signals using the 20 pips moving average Oil Trading strategy, we shall use the 1hour and 15 minute crude trading chart time-frame.
On the 1 hour oil chart time frame the crude trading price on the chart should be above both the 100 and 200 simple moving average. We then move to use a lower oil chart time frame - the 15 minute chart time frame to generate a crude oil trade signal.
On 15 minute oil chart time frame, when crude trading price reaches the 20 pips range above the 200 SMA, we open a buy oil trade and place a stop loss 30 pips below the 200 SMA. Stop loss can be adjusted to the amount of Pips that are suitable for your risk but to avoid being stopped out by normal Oil trading volatility its best to use a reasonable stoploss level.
A buy oil trade can also be opened when the crude trading price touches the 100 simple moving average, provided the crude trading price is not very far from the 200 simple moving average. Normally the 100 SMA will be within the 20 pips range of the 200 SMA.
100 and 200 SMA Oil Trading Buy Oil Signal - 20 Pips Moving Average Strategy
Oil Downtrend/Bearish Market
To generate sell (short oil signals) using the 20 pips moving average Oil Trading strategy, we shall also use the 1 hour oil chart time frame and 15 minute crude trading chart time-frame.
On the 1 hour oil chart time frame, the crude trading price should be below both the 100 and 200 SMA. We then move to the 15 minute oil chart time frame to generate a oil Signal.
On 15 minute oil chart, when crude trading price reaches the 20 pips range below the 200 SMA, we open a sell oil trade and place a stop loss 30 pips above the 200 simple moving average.
100 and 200 Simple Moving Average Oil Trading Sell Oil Signal - 20 Pips Price Range Moving Average Strategy
With this oil strategy method crude trading price will generally bounce of these support and resistance levels because many oil traders watch these levels, and open similar crude oil trades at around the same point.
These support & resistance levels act as short term resistance or support levels within the crude trading price charts.
Profit Taking level For This Strategy
With this oil strategy the crude trading price will bounce & make a move in the direction of the original Oil trend. This move will range from 60 - 70 pips.
The best oil profit taking level would therefore be considered to be 60 to 70 pips from the 200 SMA.
