What is a Oil Trend?
A oil trend is the tendency of crude crude oil prices to move in one specific direction for a certain period of time.
crude oil trading prices generally move in trends, the oil trend direction can either be upwards or downward.
Oil Traders use oil tools such as oil trend lines to identify oil trends.
Oil Trend lines help to define entry and exit points for trades that are open by crude oil traders.
The oil trend line define the oil market oil trend & as long as crude oil trading prices continue to move within the oil trend line the oil traders will keep their trade open. Oil traders will only close their open oil trade once the crude oil trading prices stop moving within the oil trend lines.
The two types of oil trends are:
Upward Oil Trend - Drawn using an upwards oil trend line
Downward Oil Trend - Drawn using a downward oil trend-line
Upward Crude Oil Trend
Tutorial:How to Draw & Trade Upward Oil Trend
Upward Oil Trend - Drawn using an upwards oil trend-line
Downward Oil Trend
Tutorial: How to Draw and Trade Downward Oil Trend
Downward Oil Trend - Drawn using a downward oil trend-line
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 and Meaning of a Oil Trend & How to Trade a Oil Trend
To draw a 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 the oil trend are along the lows of the crude crude oil price bars in a rising market. An upward bullish oil trend move is defined by higher highs and higher lows.
- 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 entry or an exit oil signal.
- The more often a oil trend is touched by crude crude oil price but not broken, the more powerful the oil trend signal.
