Moving Average Crossover Trading Signals

Moving average technical indicator can be used to determine the momentum of a oil market move - momentum of a oil trend. In crude oil trading analysis there is method of using the moving average indicator just to do this. This method of oil trading is known as the moving average crossover oil signal. This moving average crossover oil signal method involves using two moving averages - one moving average that has a higher crude oil price period and another moving average that has a lower crude oil price period. For example a moving average indicator crossover oil system can have the 5 day moving average and the 7 day moving average.

These two moving averages will then be used to determine the direction of the market and also the momentum of the crude oil trend.

Upward Oil Trend - when both moving averages are moving up the oil trend is upward - upward oil trend direction

Downward Oil Trend - when both moving averages are moving down the oil trend is downwards - downwards oil trend direction

The two moving averages will also be used to determine the momentum of the current oil market trend direction. As long as the two moving averages keep moving in the same direction then the current oil trend direction is likely to continue.

If the two moving averages crossover each other - then it means that the oil trend may change and a trader should get ready to open or to close a oil trade depending on the direction of the market that the trader is trading.

A trader can learn more about how to use this moving average crossover oil signal and get an example of how this Moving Average crossover signal crude oil trading system is used to generate trade signals in the oil trading strategy tutorial: Moving Average Crossover Signal Oil Trading Method

Beginner crude oil traders can also add this oil trading strategy method in their crude oil system and combine this moving average crossover method with other technical technical indicators to come up with a trading system. A trader will then write the rules of their crude oil system and use these written oil trading rules to know when to open a buy oil trade or a sell oil trade & when to close the trade. To learn how to come up with a oil system - traders should go to the oil trading strategies section of this website and read the oil systems tutorials.

Oil Trading Trend Indicators Moving Average Crude Oil Indicator Technical Analysis - Oil Trading Trend Indicator MT4 Moving Average Indicator