Oil Technical Analysis Live Charts

Oil Technical Analysis Course Tutorial

Oil Technical Analysis is the science and art of forecasting future crude trading price movement based on historical crude trading prices combined with Oil indicators. Oil Technical Analysis Course - This Technical Analysis study often interprets the crude trading price data by studying a chart & looks for chart patterns and signals for buying & selling.

The history & origin of this Technical Analysis method dates back several hundred years to Japanese and Arabian markets, Oil Technical Analysis involves using mathematical manipulation of crude trading price data to optimize buy & sell points. Use of this type of Technical Analysis in modern computerized programs has become increasingly popular.

The information which the is studied and assessed is crude trading price movement so as to plan an entry or exit into a trade. The goal is to determine how the market is trending.

Technical Analysis

This Technical Analysis - studies the supply & demand of a oil in an attempt to determine in what direction the price will continue to move in.

While technical analysis deals with crude trading price & indicators it is just a measure of investor sentiment.

What to Look For

Find the Trend

The motto of technical analysis is: "the trend is your friend." Finding the prevailing trend will help you become aware of the overall direction and offer you better oil trading opportunities - especially when shorter-term market movements give conflicting trading signals.

Daily charts are more ideally suited for identifying long-term trends. Once you have found the overall direction then you generally open buy or sell orders in that direction.

Trend or Range

No matter what crude trading price is doing, it usually falls into one of these 2 categories. If the crude trading price is moving in a pattern setup or in one direction, you can use trend lines to analyze where the crude trading price should go. If the market seems to be bouncing back and forth in a range, you can use support & resistance lines to make note of where to open buy or sell crude trade orders.

One of the greatest goals of Technical Analysis studies & techniques in the market is to determine whether oil will move in a trend in a certain direction, or if market will move sideways and remain range-bound. The most common Technical Analysis method to determine this is to draw trend lines which are used by crude traders to determine whether or not the current direction of the market will continue. Many investors avoid trading in a range-bound market and only buy or sell oil when there is a trend since this makes trading more predictable.

For technical analysts the most important oil tool is the chart. The purpose of a chart is to provide a visual representation of crude trading price quotes (drawn on the y-axis) against time (drawn on the x-axis) for oil instrument, this chart is used as a basis for making predictions of the future crude trading price direction.

Oil Trendlines

The direction of these trend lines determines the market direction. A trend line drawn moving upward represents a bullish market and a trend line drawn moving downward represents a bearish market.

Support & Resistance

Support & resistance areas are points on a chart which tend to act as boundaries. A support zone is usually the trough or low point on a chart whereas a resistance level is the high or the peak point on a chart. These support and resistance levels are used as buy/sell points.

MAs Technical Indicator

Moving averages indicator are used to show the average crude price of a oil instrument over a given period of time. Moving Averages indicators are called moving because they reflect the latest average in the movement of the prices.

Oil Trading Strategies

To be a successful trader you need to come up with a oil strategy. There is not one set Oil Trading strategy that is good for all crude traders. But Rather, each trader needs to develop their own crude strategy.

Oil Technical Analysis is the most widely used strategy in the market and is used to decide the entry and exit points.

Market movements have identifiable repeating crude trading price patterns that have been studied over many years providing a thorough understanding of these market trends and how they can be used to form the basis of a good trading crude strategy.

There are many Oil Technical Analysis tools available provided to facilitate this study

The beginner trader is advised to study each Technical Analysis tool separately to get working knowledge of the concepts & application for each Technical Analysis study. Once you understand one Technical Analysis method, keep on using it while studying others. Each Technical Analysis tool tends to combine well when used with other Technical Analysis Tools.

Support and resistance levels are also used in many trading strategies. Support is defined as the level that is repeatedly seen as the bottom (floor) - when the crude trading price reaches this level it tends to bounce. Resistance level is the ceiling, the upper boundary (ceiling) that a oil instrument rarely trades above.

Support and resistance levels are valid for a period of time, until they are broken, When the market breaks through these support and resistance levels, the crude trading price is expected to continue in that direction. For example, if the market rises above the previous resistance level, it is seen as a bullish signal and the bullish movement should continue upwards.

Longer chart time frames establish more stronger support and resistance levels. Oil traders can use these support and resistance levels to determine when to enter a trade or exit an open position.

Moving averages is another common indicator used as to create trading strategies. Moving averages try to smooth out short term market price fluctuations giving a clearer picture of the crude trading price movements and trends. Oil Traders can draw SMA to determine crude trading price movement tendency to move up or down - crude trend.

If crude price crosses above the simple moving average then it will keep on moving upwards.

If crude trading price crosses below the SMA then it will keep moving down

These are examples of oil strategies that can be used individually or combined.

Oil Traders use two or more Technical Analysis studies to determine when to open an order when both Technical Analysis indicators support the same direction. If several Oil Technical Analysis indicators show that the market is moving towards a particular direction the a trader can trade with more reassurance than when he is only relying on a single Technical Analysis indicator.

Fundamental analysis should also be used together to reinforce Technical Analysis findings, or vice versa. A trader should ideally take into account two or more Technical Analysis indicators when developing a Oil Trading Strategy.

Every oil strategy should provide clear guidelines about when to enter and exit a buy or sell trade position, how much loss can be accepted if the market moves in the other direction and how much profit is expected. Following these simple Technical Analysis guidelines can help you become successful in crude oil.