Oil Technical Analysis is Based on 3 Factors Common in the Oil Trading Market:
1. Oil Price Moves in Trends
crude oil price movements follow trends. This means that after a oil trend has been established, the future crude oil market price movement is more likely to be in same direction as the oil trend than to be against it. Most oil strategies are based on this oil technical analysis concept - oil trend trading.
2. Oil Price Movement Discounts Everything
oil trading analysis only considers crude crude oil price movement and assumes that, at any given time, crude crude oil price reflects everything that has or could affect the oil trading instrument including even the fundamental factors. This only leaves the study of crude oil price, which is a product of the supply and demand for a particular oil in the crude oil trading market.
3. History Tends to Repeat Itself
History repeats itself mainly in terms of crude crude oil price movement. The repetitive nature of oil market movements is attributed to oil traders investor psychology; in other words, oil trading participants tend to provide a consistent reaction to the oil market most of the time. crude oil trading analysis uses oil chart patterns to analyze these crude crude oil price movements. Although these oil charts represent historical data they are still relevant because they illustrate oil chart patterns that often repeat themselves.
List of All Oil Indicators – Oil Technical Analysis Explained PDF - Oil Technical Analysis PDF
Understanding this oil technical analysis of the crude oil market can be a valuable oil tool in determining the oil trend of any oil market and assisting with entry and exit levels for your crude oil trades.
The goal of these oil technical analysis methods is to help oil traders determine when the oil market is trending, and when it is not. If the oil is moving in one particular direction, then we want to be on board. If the oil trading instrument is not moving in a particular direction, all you are going to do is lose money as you will get whipsawed around and this is not what we want as oil investors.
Unfortunately, many oil traders fight the oil trend and buy or sell in the opposite direction of a this oil trend direction, trying to pick a top or a oil market bottom, only to see the oil market move further in the direction of the crude oil trend.
Another common mistake oil traders often make is adding on to a losing oil position, averaging a loss. This is not a good oil strategy especially in a strongly trending crude oil trading market. It is something that experienced investors never do. The oil trend is your friend, never go against it.
This oil technical analysis studies alert investors of oil setups and there are no certainties in financial crude oil trading market. Profits come from using proven oil strategies and oil methods to find a trending crude oil and taking crude oil trades in the same direction of the crude oil trend.
With so many oil investors using similar oil tools, oil technical analysis can become a self fulfilling prophecy. If many oil investors use the same levels as a buying point, the crude crude oil price goes up as everyone will make similar oil technical analysis moves. However, the question is always how long these oil moves will last?
Understanding this oil technical analysis methods will give the crude oil charts some meaning when you look at them and apply oil technical analysis. crude oil trading analysis will help you understand why certain crude crude oil price movements occurred.
oil trading charts are used with oil technical indicators to look for oil chart patterns that have occurred in the past under certain conditions. When these conditions are noted again, you can use the past oil chart patterns studies to make a buy or sell decision.
Learn Crude Oil Technical Analysis Guide
- Moving Averages Crude Oil Indicator
- Relative Strength Index Crude Oil Indicator
- Stochastic Oscillator Crude Oil Indicator
- MACD Crude Oil Indicator
- Crude Oil Fibo Retracement Indicator
- Bollinger Bands Crude Oil Indicator
Most oil technical indicators are shown separately from the crude oil chart usually below it. This is because these oil technical indicators often use a different scale than that of the crude crude oil price chart.
Some of the oil technical indicators are shown on the crude crude oil price chart itself, such as Moving Averages and Bollinger bands - these indicators are referred to as crude crude oil price overlays.
Explanation of these oil indicators is found under the topic: List of All Crude Oil Indicators Lesson - Learn Oil Technical Analysis Tutorial - Oil Technical Analysis Examples
SUMMARY
- Oil Technical Analysis Relies on Defining Probabilities
- Oil Technical Analysis Uses History of Oil Price Patterns
- Oil Technical Analysis Uses Several Analytical Tools (Crude Oil Trading Indicators)
- Oil Technical Analysis Uses Crude Oil Trading Chart Patterns
Learn Oil Technical Analysis Guide
Most oil traders prefer technical analysis - learning the oil technical analysis methods also takes time to learn due to its nature which involves abiding by the oil technical rules.
To learn how to trade oil successfully, it is important that you understand the 3 strategies, outlined below:
1. Oil Trading moves will always follow a oil trend which can be identified by looking at the crude oil chart patterns or the oil candlesticks charts. If any oil investor tells you that you can also profit from the counter-trends consistently it will not be possible because the oil trend is the only proven method of making money in the crude oil trading market.
2. The market forces will drive the crude oil prices up or down depending on supply and demand. crude oil trading analysis seeks to measure the demand supply of a oil trading instrument using various oil technical analysis tools & oil indicators. The demand supply is reflected in the crude crude oil price action. Therefore, by simply looking at the crude crude oil price movements themselves you can try and predict what direction the crude crude oil price is likely to move towards using one or two oil technical indicators – oil technical analysis indicators like the moving average or support and resistance levels crude oil technical indicators.
3. The oil market not only shows the history of the past crude oil prices, but will also follow the oil trend that was in place, until its oil trend direction reverses. Some very important oil indicators used to determine these oil market movements are Moving Averages, MACD and Bollinger Bands Oil Indicators.
When crude oil price starts to consolidate, which means there is no oil trend, you should use a different approach to analyze the crude oil trading market. You should use support and resistance levels and breakout oil strategies to analyze the ranging oil market prices.
When the oil market retraces, you should use oil patterns and oil technical indicators to analyze whether the current oil trend will continue or reverse.
