Upward Oil TrendLines & Channels

An upwards oil trend line is drawn below the oil trend pattern by connecting at least 2 lows. This upward oil trend line will draw a line that show the general direction of the crude oil market.

The diagram below shows how crude crude oil trading price moves when it is moving in a bullish market. The crude crude oil price will move upwards forming support regions.

Since the oil market moves in a zigzag manner oil traders normally draw a oil trend line which shows the general upwards direction of the crude oil market.

A oil up trend occurs when the fore crude crude oil price will continue to make consecutive higher highs and higher lows. Each price high is going to be higher than the previous high - higher high , and each low is higher than the previous low - higher low.

Oil Trading Up oil trend lines gain more validity each time crude crude oil trading price touches this upward oil trend line but does not penetrate it. A oil up trend remains in place until this series of higher highs and higher lows is broken.

A downside penetration of an upward oil trend line is a technical sell oil signal, and usually the first indication that an upward oil trend may soon end.

Upward Oil Trend Line MT4 Oil Trend Line Indicator

When the oil market moves up it forms higher highs & higher lows forming a bullish market movement - Upward Oil Trend. An upward oil trendline can then be drawn by connecting these higher lows.

To draw this upwards oil trend line setup we use supports. To draw the upward oil trend line correctly two support levels are needed. When crude crude oil trading price touches the upwards oil trend line we buy and place stop loss oil orders just a few pips below the upward oil trend line. The diagram below shows an example of an upward oil trend line.

The oil upwards trend line setup will show the general direction of the oil market as bullish therefore oil traders will only open buy long crude oil trades as long as crude crude oil trading price is within this upward oil trend bullish market setup and within the support levels. These support levels are the levels where if the oil market retraces then these points will provide strong supports for the crude crude oil trading price. This is why many oil buyers will wait until crude crude oil trading price retraces downwards & hits these retracements levels market the upward oil trend line to open buy crude oil trades. Oil trades opened at this support levels have a high Risk to Reward Ratio with minimum draw down.

In the above upward oil trend line oil setup the oil trader would have opened buy/long crude oil trades from the signals generated at the support1, support2, support3 and these crude oil trades would have made a lot of profits with minimum amount of draw-down/retracement.

Upward Oil Trading Channel

An upwards oil channel is drawn by drawing a line that's parallel to the upward oil trend line and then adjusted to touch the top boundary of the crude crude oil trading price movement. This then forms an upwards oil channel & as long as the crude crude oil price stays between these two trading channels the bullish market movement will continue heading upwards.

How to Trade Upward Oil Trading Channel

This upwards oil channel is used by crude oil traders to show levels where it is best to take profits. Oil traders will take some profit once the crude crude oil trading price touches upper channel & wait for another retracement before opening a long buy oil trade again.

MT4 Tools For Drawing Oil Trend-Lines & Channels

The Oil MT4 Trend Line Indicator drawing tools to draw these oil trend lines & oil channels setups on the MT4 are located on the MT4 drawing tool bar within the MT4 platform, To get this MT4 tool bar if it is not activated on your oil platform, Click in "View" Next to "File" at the top left corner of the MT4 platform and click View, Then Click on Toolbars, Then Check "Lines Tool-bar" by clicking on it.

Shown Below is the screenshot Image of the MT4 drawing tool bar. To draw a oil trend line on a oil chart click on this MT4 oil trend line drawing tool and select the point where you want to draw the oil trend line.

This is one of the learn oil technical analysis lesson among the many learn oil tutorials on this website located on the side navigation menu, where you will learn how to draw oil trend lines & analyze these oil trend lines setups.