Analysis of MA Technical Indicator

Trend Identification

The oil moving average indicator can be used as an indicator for generating signals. A buy or sell oil signal is generated when crude trading price either moves above or below moving average, respectively.

If the MA is heading upward in diagonal manner then general oil market trend is upwards.

If the on the other hand the MA is heading downwards in diagonal manner then general oil market trend is downward.

Upward Trend/Bullish Trend

If the MA is moving up, then the trend is upward & the signal generated is a buy/bullish signal.

As long as the crude trading price is above the moving average then the trend will remain as an upward trend. The moving average will act as a "support level" & crude price action of the chart candlesticks should not close below the MA.

Buy Signal

When the crude trading price moves above the MA and closes above the moving average, a buy crude trade signal is generated.

Oil Traders, who want to confirm the trade signal before implementing it, should wait until the MA line turns and starts to move in an upward trend direction. It's always best to wait for the confirmation signal so as to cap chances of a oil whipsaw.

Upward Trend - How to Day Trade Oil: A Detailed Tutorial to Day Trade Strategies Methods

Downward Trend/Bearish Market

If the MA is moving down, then the trend is downward & the signal generated is a sell/short signal.

As long as the crude trading price is below the MA then the trend will remain as a downward bearish trend. The MA will act as a "resistance level" and crude price action of candlesticks should not close above the MA.

Sell Oil Signal

When the crude trading price moves below the MA and closes below the moving average, a sell crude trade signal is generated.

Traders who want to confirm the signal should wait until the MA line turns and starts to move in a downward direction. This will reduce the chance of trading a oil whipsaw.

Downwards Trend - How to Day Trade Oil: A Detailed Tutorial to Day Trade Strategies Methods

Oil Range Market signals

Range Crude Oil Market signals can also be identified using the MA Indicator.

MA Crossover Strategy Strategy

The MA cross-over method is also another signal generation strategy that is more favored by oil traders compared to the above signal generation strategy method. Moving average crossover oil strategy is also the simplest form of a oil system widely used by online crude traders. This MA crossover method is combined with other indicators to form more complex oil systems and crude strategies.