What Does Technical Analysis Mean?
Technical analysis is the study of crude crude oil price charts so as to learn how to predict crude crude oil price movements in the crude oil trading market.
Technical analysis uses historical crude crude oil price chart data to predict the next likely movement of the crude crude oil price trend.
oil trading analysis also include the use of various crude crude oil price patterns that can be identified on crude oil charts by crude oil traders. These crude crude oil price patterns are identified as commonly repeating crude crude oil price patterns that can be used by crude oil traders to predict the next likely market movements based on the technical analysis of these commonly repeating chart crude oil price patterns.
Traders then come up with various oil strategies that incorporate these technical analysis techniques in their oil plan and then use these strategies to generate oil signals & detect when to buy a oil trading , when to open a sell oil trade and also when to close a oil trade position.
Technical Analysis is Based on 3 Factors Common in Oil Trading Market:
1. Crude Oil Price Moves in Trends
Oil Price movements follow oil trends. This means that after a oil trend has been established, future market crude crude oil 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 technical analysis concept.
2. Oil Price Discounts Everything
Technical 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 crude crude oil price including a country's economy and even the fundamental factors. This only leaves the study of crude oil price, which is a product of the supply and demand for 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 trader psychology; in other words, oil trading participants tend to provide a consistent reaction to the oil market most of the time. Technical analysis uses oil chart patterns to analyze these chart crude crude oil price movements. Although these oil charts represent historical data they are still relevant because they illustrate crude crude oil price patterns that often repeat themselves.
List of All Crude Oil Technical Indicators
Understanding this oil technical analysis in oil trading can be a valuable tool in determining the oil trend of any market & assisting with entry & exit levels for your crude oil trades.
The goal of these technical analysis techniques is to help oil traders determine when a 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 it is not, all you are going to do is lose money as you will get whipsawed around and this is not what we want as investors.
Unfortunately, many oil traders fight the oil trend and buying/selling in the opposite direction of a this market oil trend direction, trying to pick a top or a 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 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 oil trader never do. The oil trend is your friend, never go against it.
oil trading analysis studies alert oil traders of setups & there are no certainties in financial market. Profits come from using proven oil strategies & techniques to find a trending crude oil and taking trades in the same direction as that of the crude oil trend.
