Oil Trading Long - Oil Trading Short - Trading Charts

In oil trading, there are two types of trades, these 2 are:

• Long (buy) - Going long means the trend is buy/bullish.
• Short (sell) - Going short means the trend is sell/bearish.

Buying/Long vs Selling/short in Oil Trading

Both terms in Oil trading, refer to things traders do when opening a trade.

Buying Long - oil term used by traders when buying oil(when opening a buy trade).

Selling short - oil term used by traders when selling oil(when opening a sell trade).

Long - Long is another term used to refer to buying in crude oil, If a trader goes long it means that he buys the oil that is heading in an upward trend direction. When the crude trading price is moving in an upward trend the trend is referred to as bullish trend.

Short - Short is a term used to refer to the selling of oil that is going in a downward trend direction. When the crude trading price is going downwards then it is known as to as a bearish trend.

Basically the term, "selling short" can be refer to selling in the markets. Selling short is used to trade a oil that is predicted to depreciate in its value compared to another, when this oil is sold then it is the same as not holding value in this crude oil and holding the same value in another form against which this oil is traded against - mostly US Dollars.

Buy/Long

If the crude trading price is going up we buy, this is referred to as going long - Therefore long is just another term for buy. When the market trend is going up it is referred to as bullish, this is when a buy trade is placed. A bullish trend is identified by drawing an up-ward trendline on a chart. The example shown below shows a long/buy signal.

Buy/Long

Sell/Short

If the crude trading price is going down we sell, this is referred to as going short. When the market trend is going down it is known as to as a bearish. The example shown below shows a downward trend, this is when a short sell is placed. The short/sell is identified by drawing a downwards trendline on a chart. The example shown below shows a short/sell signal.

Sell/Short - Oil Trading Buy Trade and Oil Trading Sell Trade

Charts

A chart provides a visual representation of crude trading prices (drawn on the y-axis) against time (drawn on the x-axis) for crude trading price interval. The movement of crude prices is plotted on these charts. The chart can be drawn as candlestick charts like the one below or as line charts or bar crude charts.

Chart - Candlesticks Oil Trading Charts

The 3 common types of charts used in oil trading are:

• Candlesticks Oil Charts
• Line Oil Charts
• Bar Oil Charts

These 3 types are covered in the topic Chart Types.

Oil Software

This is the oil software that is provided by a broker to help traders place their trade transactions. Once you download and installs this oil software on your computer you can then begin to trade in the market. All trade transactions are executed through this platform. If you want to learn a platform, MetaTrader 4 Oil Software is a good platform to start with.

To set these crude trade orders, open MetaTrader 4 Oil Software, open a 'chart', right click on 'chart', choose 'New Order', then select the order either sell or buy as pictured below. (Short Cut Keyboard Keys - Press F9)

Setting Buy Long Order and Sell Short Oil Trading Order in MT4 Software