Technical Analysis of Moving Average Indicator
Oil Trading Trend Identification
The oil trading moving average indicator can be used as an technical indicator for generating crude oil signals. A buy or sell oil signal is generated when crude oil price either moves above or below moving average, respectively.
If the Moving Average is moving upward in diagonal manner then general oil market trend is upwards.
If the on the other hand the Moving Average is heading downwards in diagonal manner then general oil market trend is downward.
Upward Oil Trading Trend/Bullish Trend
If the Moving Average is moving up, then the oil trend is upwards and the signal generated is a buy/bullish oil trade signal.
As long as the crude oil price is above the moving average then the oil trend will remain as an upward trend. The moving average will act as a "support level" & crude oil price action of the oil chart candlesticks should not close below the Moving Average.
Buy Trading Signal
When the crude oil price moves above the Moving Average and closes above the moving average, a buy oil trade signal is generated.
Oil Traders, who want to confirm the oil trade signal before implementing it, should wait until the Moving Average line turns and starts to move in an upward oil trend direction. It is always best to wait for the confirmation oil trading signal so as to reduce chances of a oil trading whipsaw.
How to Day Trade Oil Trading: A Detailed Tutorial to Day Trading Strategies
Downwards Oil Trading Trend/Bearish Market
If the Moving Average is moving down, then the oil trend is downward & the signal generated is a sell/short oil trade signal.
As long as the crude oil price is below the Moving Average then the oil trend will remain as a downward bearish Oil Trading trend. The Moving Average will act as a "resistance level" and crude oil price action of candlesticks should not close above the Moving Average.
Sell Trading Signal
When the crude oil price moves below the Moving Average and closes below the moving average, a sell oil trade signal is generated.
Traders who want to confirm the oil signal should wait until the Moving Average line turns & starts to move in a downward direction. This will reduce the chance of trading a oil trading whipsaw.
Downwards Oil Trend - How to Day Trade Oil Trading: A Detailed Tutorial to Day Trading Strategies
Oil Trading Range Market trading signals
Range Oil Market signals can also be identified using the Moving Average Oil Indicator.
Moving Average Crossover Method Strategy
The moving average crossover method is also another oil signal generation strategy that is more favored by oil traders compared to the above oil signal generation strategy method. Moving average crossover oil strategy is also the simplest form of a oil trading system widely used by online crude oil traders. This Moving Average crossover method is combined with other technical indicators to form more complex oil systems and oil trading strategies.
