Crude Oil Trading 20 Pips Oil Trading Price Range Moving Average Strategy
Crude Oil Trading 20 Pips Moving Average Oil Trading Systems
The 20 pips crude oil price range moving average oil trading strategy is used with the 1 Hour oil chart and 15 minute crude oil chart. On this oil chart timeframes we use the 100 and 200 simple moving average oil technical trading indicator.
Both the 1 Hour and 15 minute oil chart timeframes will use the 100 and 200 SMA (SMA Indicator) to determine the direction of the Oil Trading trend.
The 1 Hour oil chart time-frame checks the long term direction of the Oil Trading trend, upward or downward trend, depending on the direction of the moving averages. All crude oil trades taken should be in this oil trend direction.
We then use the 15 minute oil chart to find the optimal point to enter crude oil trades. Oil trades are opened only when the crude oil price is within 20 pips range of the 200 simple MA, if crude oil price is not within this pip range crude oil trades are not opened.
Oil Trading Uptrend/Bullish Market
To generate buy (bullish oil trading signals) using the 20 pips moving average Oil Trading strategy, we shall use the 1hour and 15 minute oil chart timeframe.
On the 1 hour oil chart timeframe the crude oil price of the oil chart should be above both the 100 and 200 simple moving average. We then move to a lower oil chart timeframe, the 15 minute chart timeframe to generate a oil trade signal.
On 15 minute oil chart timeframe, when crude oil price reaches the 20 pips range above the 200 SMA, we open a buy oil trade and place a stop loss 30 pips below the 200 SMA. Stop loss can be adjusted to the amount of Pips that are suitable for your risk but to avoid being stopped out by normal Oil Trading volatility its best to use 30 pips stop loss.
A buy oil trade can also be opened when the crude oil price touches the 100 Simple moving average, provided it’s not very far from the 200 SMA. Normally the 100 SMA will be within the 20 pips range of the 200 SMA.
100 and 200 Simple Moving Average Buy Trading Signal - Moving Average Oil Strategy
Oil Downtrend/Bearish Market
To generate sell (short oil trading signals) using the 20 pips moving average Oil Trading strategy, we shall also use the 1 hour oil chart timeframe and 15 minute oil chart timeframe.
On the 1 hour oil chart timeframe, the crude oil price should be below both the 100 and 200 SMA. We then move to the 15 minute oil chart timeframe to generate a oil trading Signal.
On 15 minute crude oil chart, when crude oil price reaches the 20 pips range below the 200 SMA, we open a sell oil trade and place a stop loss 30 pips above the 200 simple moving average.
100 and 200 Simple Moving Average Sell Oil Signal - Moving Average Strategy
With this oil trading strategy method crude oil price will generally bounce of these support and resistance levels because many oil traders watch these levels, and open similar crude oil trades at around the same point.
These support & resistance levels act as short term resistance or support levels within the crude oil price charts.
Profit Taking level For This Strategy
With this oil trading strategy the crude oil price will bounce & make a move in the direction of the original Oil Trading trend. This move will range from 60 - 70 pips.
The best oil trading profit taking level would therefore be considered to be 60 to 70 pips from the 200 SMA.
