Learn Oil Trading Strategies

Before coming up with a oil trading plan a trader must learn about the various oil trading strategies that they can sue to trade oil. Coming up with the right oil trading strategy can increase your chances of becoming more successful in crude oil trading.

For traders who want to learn about oil trading strategies there are 50 oil trading strategies listed in the oil trade strategies section of this strategy. This strategy section also shows traders how combine these strategies to create a crude oil trading system. The oil trading is a set of rules that will be used by crude oil traders to generate crude oil signals. For example the oil trading system rules will specify how two or more indicators will be used together to generate a buy or a sell oil signal.

As a trader the strategy you choose should be applied in your trading once you decide what type of trader you are and what type of trading method you will be using to analyze the crude oil market moves.

For examples you may decide you want to be a scalper you will use your scalping strategy & only open traders for a few minutes. If you're a oil trend trader you will use your strategy after you've decided the oil trend of the crude oil market. If the oil trend is upwards you will use your oil trading strategy to open buy crude oil trades.

If you are a day trade you will use your trading strategy to open trades that will only be opened for a few hours. Your trades should all be closed during the day and you will not hold your trades overnight. As for the trading method which may be that of oil trend following you will first draw oil trend lines on the oil chart to figure out the overall market oil trend & after that you'll then apply your trading strategy to open crude oil trades.

In technical analysis there are various methods used to trade oil which a trader might use to determine which of these techniques of trading they will be using when trading the crude oil market. After choose in their method traders will then apply their oil trading strategy to open crude oil trades.

Types of Oil Trading Methods

There are 2 general methods of trading the crude oil market, these are:

1.Oil Trading Trend Trading

2.Range Trading

Oil Trading Trend Trading

In this method a trader will first of all determine the overall market oil trend before applying their oil trading strategy to open crude oil trades.

To determine the oil trend - this can either be an upward oil trend or a downwards trend.

A trader may use oil trend lines or moving averages to determine the overall market trend. After determining the crude oil market oil trend then the trader can use their oil trading strategy to open crude oil trades.

For example a trader may determine that the crude oil market trend is upward by using moving averages. The trader may then use a oil indicator such as Bollinger bands and open trades once the crude oil price retraces to the lower Bollinger band because this lower band will act as the support level of oil price. Therefore the trading strategy that the trader will be using is the strategy of resistance and support levels & the trader will be using Bollinger bands to determine these points and open and close trades based on these points.

Range Trading

Range trading is a method of trading oil that move within a particular band of oil prices and only oscillates between these two points without moving much outside these two points.

A trader will then use the strategy of support and resistance to determine which levels to open buy or sell crude oil trades. The trader will draw a support line and a resistance line. The support level will be used to open buy crude oil trades and the resistance level will be used to open sell crude oil trades.

The most popular trading method between these 2 is the oil trend trading method. Oil traders should always try to trade with the oil trend trading technique as this technique is the most reliable method when it comes to trading oil. Even though sometimes the crude oil market will be trending and at other times the crude oil market will be moving in a range when the crude oil market is consolidating traders should try to trade the crude oil market only when there is a trend. After determining the oil trend traders will then use their oil trading strategy to determine when to open buy or sell crude oil trades that are in the direction of the overall market trend.

Once you have decided what type of trader you are: scalper, day trader or swing trader you should then come with the following:

1.Trading Method

2.Trading Strategy

After coming up with this 2 you'll then combine these 2 & use these to detect when to buy or close trades.

You can then practice trading on the practice account so as to determine profitability of your method and trading strategy. You'll then use the results to improve the profitability of your technique and strategy and once you have gained experience to trade with these 2 you can then open an account & start trading the live oil market.