Learn Oil Trading Price Action Strategies

A trader must come up with a oil strategy which they stick to when trading the online crude oil market. A trader must have the discipline to follow the rules of their oil trading strategy at all times. That's why it is best to come up with trading strategies that are profitable - profitable oil systems will be a lot easier to follow and stick to. This is because a trader knows that by following the rules of their trading system they will be successful.

A carefully designed trading strategy that has been back tested and proven to produce profitable results is one of the keys to becoming successful when trading the crude oil market. This type of strategy will make it easier for the trader to follow the rules of their oil trading strategy because they already know that the strategy is profitable, therefore maintaining the discipline to continue following the oil system will be much easier.

Successful oil trading strategies will also include:

1. Oil money management guidelines

2.Oil Trading Psychology Mindset

These 2 will greatly improve the success of any crude oil trading system.

However, Let us look at crude oil price action strategy before explaining more about oil money management & oil trading psychology.

Oil Trading Price Action Trading Strategy

Oil Trading Price action is the use of crude oil price movements to determine when to buy or close trades. Oil Trading price action will use the study of crude oil chart patterns that form time and time again and these crude oil chart patterns can be interpreted in different ways. The trader will use this crude oil chart pattern to determine the likely market direction that the crude oil market is likely to take next based on the crude oil price crude oil chart patterns that have been formed on the charts.

In crude oil price action traders may use different methods to generate oil signals from the chart setups. Some of these methods are:

Candlesticks oil trading patterns - a trader may use the study of Japanese candlestick oil chart formations which is the study of various candlestick formations along with how to interpret these candlesticks formations. A candlestick pattern may consist of only one oil candlestick or a multiple of oil candlesticks. To learn more about crude oil candlesticks patterns traders can find these candlestick crude oil chart patterns tutorials on the learn oil trading tutorials of this web-site under the crude oil trading analysis concepts.

Support and Resistance Levels - traders can use crude oil price action and combine this crude oil price action with support and resistance levels. A trader will wait for crude oil price to hit the support level to open a buy oil trade and wait for the crude oil price to touch the resistance level to open a sell oil trade. The concept of trading major support and resistance levels is a very popular method in oil. For example in a upward oil trend a trader may wait & only open buy oil traders when oil prices hit support levels - at the same time a trader will take profit once the crude oil price hits a resistance level and then wait for another pullback to open a buy oil trading again.

To learn more about support and resistance levels traders can find these tutorials on the learn oil trading tutorials of this web-site under the crude oil trading analysis concepts.

Oil Trading Trend lines - traders can also use oil trend lines to determine crude oil price action direction or the crude oil trend. For an upward oil trend line that shows the crude oil market is trending up a trader will open buy crude oil trades once crude oil price touches the upward oil trend line. For a downward oil trend that shows the general market direction is downwards a trader will open sell crude oil trades once the crude oil price touches the downwards oil trend line.

To learn more about how to trade with oil trend lines traders can find these tutorials on the learn oil trading tutorials of this web-site under the crude oil trading analysis concepts.

Crude Oil Trading Chart Patterns - crude oil chart patterns is different from candlestick patterns, these are two different methods of technical analysis, and traders should learn more about crude oil chart patterns in the oil trading tutorials section of this website under the technical analysis concepts.

Chart patterns is the study of a formation of several candlesticks over a period of time. These patterns are consolidation patterns, oil trend continuation patterns and market reversal oil trading patterns. Oil traders can use the study of these crude oil chart patterns to determine the next likely market move.

Oil Trading Strategy Tips

Once a trader has come up with their oil trading strategy, they should also include the following in order to make their oil strategy more successful.

1.Oil Trading Money Management Rules

2.Oil Trading Psychology

Crude Oil Trading Money Management Rules

Oil money management guide-lines should be part of your oil trading strategy - these rules will help you as a trader to manage risk. This means that you will use the two rules of oil trading money management - these are risk:reward ratio & draw down reducing method when placing your crude oil trades to determine lot size that you will open in the crude oil market. The most popular oil money management rule use in crude oil trading and one that you should also add to your trading plan is the rule that says a trader should never risk more than 2% of account balance on any one single oil trade.

To learn more about these two oil trading money management guidelines, traders should read the oil money management guide that's on the learn oil trading tutorials section of this website under the oil trading key concepts lessons.

Oil Trading Psychology Mindset

In order to become successful when trading the crude oil market a trader has to learn about oil trading psychology. The oil trading psychology or mindset that's required to become successful in oil trading is one that avoids the emotions of fear & greed while trading the crude oil market & is a mindset of total discipline that a trader will follow all their rules & their oil trading strategy & only trade with trading signals that are generated by their oil strategy. With discipline a trader will not trade unless their oil trading strategy gives a trading signal. A trader will have the mindset of only following their trading system 100% all the time without second guessing the crude oil trading system. A disciplined trader will also not place trades in the crude oil market just because the crude oil market has started to move up or downward, instead a trader will wait for a signal to trade to be generated by their oil trading strategy.

In order to learn more about oil psychology and how to manage emotions while trading the online oil market a trader can read the oil trading psychology guides from the learn oil trading tutorials section of this website under the oil key concepts courses.