Technical Analysis of Moving Average Technical Indicator
Crude Oil Trend Identification
The oil moving average indicator can be used as an technical indicator for generating oil signals. A buy or sell oil signal is generated when crude trading price either moves above or below moving average, respectively.
If the MA is heading upward in diagonal manner then general oil market oil trend is upwards.
If the on the other hand the MA is heading downwards in diagonal manner then general oil market oil trend is downward.
Upward Oil Trend/Bullish Trend
If the MA is moving up, then the oil trend is upward & the signal generated is a buy/bullish oil signal.
As long as the crude trading price is above the moving average then the oil trend will remain as an upwards trend. The moving average will act as a "support level" & crude trading price action of the crude oil chart candlesticks should not close below the MA.
Buy Trading Signal
When the crude trading price moves above the MA and closes above the moving average, a buy crude oil trade signal is generated.
Oil Traders, who want to confirm the oil trade signal before implementing it, should wait until the MA line turns and starts to move in an upward oil trend direction. It's always best to wait for the confirmation oil trading signal so as to reduce chances of a oil whipsaw.
Upward Oil Trend - How to Day Trade Oil: A Detailed Tutorial to Day Trade Strategies
Downward Oil Trend/Bearish Market
If the MA is moving down, then the oil trend is downward & the signal generated is a sell/short oil signal.
As long as the crude trading price is below the MA then the oil trend will remain as a downward bearish Oil trend. The MA will act as a "resistance level" and crude trading price action of candlesticks should not close above the MA.
Sell Crude Trading Signal
When the crude trading price moves below the MA and closes below the moving average, a sell crude oil trade signal is generated.
Traders who want to confirm the oil signal should wait until the MA line turns and starts to move in a downward direction. This will reduce the chance of trading a oil whipsaw.
Downward Oil Trend - How to Day Trade Oil: A Detailed Tutorial to Day Trade Strategies
Oil Trading Range Market signals
Range Crude Oil Market signals can also be identified using the Moving Average Crude Trading Indicator.
Moving Average Crossover Method Strategy
The moving average crossover method is also another oil signal generation strategy that is more favored by oil traders compared to the above oil signal generation strategy method. Moving average crossover oil strategy is also the simplest form of a oil system widely used by online crude oil traders. This MA crossover method is combined with other technical indicators to form more complex oil systems and crude trading strategies.
