Oil Retracement on Upward and Downward Oil Trend

What Is a Oil Price Retracement in Oil?

The crude crude oil trading price of a oil instrument doesn't move up or down in a straight line. Instead the crude crude oil trading price moves up or down in a zigzag pattern called a oil trend - in this pattern the crude crude oil price moves upward in a oil trend then it retraces before resuming the oil trend direction - in a downward oil trend the crude crude oil trading price moves downward in oil trend direction and then retraces before resuming the oil trend direction.

What's a retracement? A crude crude oil trading price retracement is a pull-back of the crude crude oil trading price before the oil market resumes the original oil trend movement.

Example of Zigzag Oil Price Movement: The example shown below shows crude crude oil trading price moving up in a zigzag pattern showing crude crude oil trading price oil trend and crude crude oil trading price retracement.

The example shown below shows movement in an upward market and crude crude oil trading price retracement.

What is Retracement? - What is a Crude Oil Retracement? – Oil Price Retracement Explained With Example

What is Retracement Trading in Crude Oil?

1-2: Oil Price Moves Up - Oil Trend Direction

2-3: Oil Price Retracement

3-4: Oil Price Moves Up - Oil Trend Direction

4-5: Oil Price Retracement

5-6: Oil Price Moves Up - Oil Trend Direction

The retracement of crude crude oil price is explained on the above example – this represents a oil retracement in an upwards crude oil trend.