What is a Downtrend?
Down oil trend is when the crude crude oil trading price of a oil chart is moving lower and lower. Oil prices generally close lower than where they opened.
How to Trade Downwards Oil Trend: Oil traders use the downwards oil trend direction to open sell oil trades
Downward Oil Trend
Downward Oil Trend - Drawn using a downward oil trend-line
What's a Downwards Oil Trend? - What is Crude Oil Downtrend? – What is Downtrend?
The MT4 platform provides charting tools for drawing trends on crude oil charts. To draw crude oil trend on crude oil charts traders can use the oil trend line drawing tool provided in the MetaTrader 4 software that is shown below.
Definition of a Oil Downward Oil Trend and Meaning of Oil Down
To draw a downward oil trend line on the MT4 platform and select point A where you want to start drawing and then point B where you want the it to touch. You can also right click on trend-line and on the properties option select the option to extend the ray by ticking the "ray check box", if you do not want to extend it, then uncheck this option in your oil trading platform.
The oil trend is your friend. Is a popular saying among oil traders because you should never trade against it. This is the most reliable oil method to trade Oil because once crude oil prices begin to move in one direction they can move in that direction for quite some time in what is known as a trend.
Principles of How to Draw and Define Crude Oil Trend
Use oil candle charts
- The points used to draw are along the highs of the crude crude oil price bars in a falling downwards market. A downwards bearish oil trend move is defined by lower highs and lower lows.
- The points used to draw the oil trend lines are extremes points – the high or the low crude crude oil trading price. These crude crude oil trading price extremes are important because a close beyond the extreme tells oil traders that the oil trend of oil might be changing. This is an exit oil signal.
- The more often a downwards oil trend is touched by crude crude oil price but not broken, the more powerful the downward oil trend signal.
