Oil Trading Long and Short and Oil Trading Charts
In oil trading, there are two types of oil trades, these are:
- Long (buy) - long is if the oil trend is buy/bullish.
- Short (sell) - short is if the oil trend is sell/bearish.
Buying/Long and Selling/short in Oil Trading
Both terms in Oil Trading, refer to things we do when open a oil trade.
Buying Long - oil trading term to use when buying and when opening a oil trade.
Selling short - oil trading term to use when selling and when opening a oil trade.
Long - Long is another term used to refer to buying in oil trading, If a trader goes long it means that he buys the oil trading instrument that is heading in an upward trend direction. When the trading crude oil price is moving in an upward oil trend the trend is referred to as bullish crude oil trend.
Short - Short is a term used to refer to selling of a oil trading instrument that is going in a downward trend direction. When the trading crude oil price is going downwards then it is referred to as a bearish crude oil trend.
Basically the term, "selling short" can be refer to selling in the crude oil markets. Selling short is used to transact a oil trading instrument that is predicted to depreciate in value compared to another, when this oil is sold then it is the same as not holding value in this oil trading instrument and holding the same value in another form against which this oil trading instrument is traded against - mostly US Dollars.
Buy/Long
If the trading crude oil price is going up we buy, this is referred to as going long - Therefore long is just another name for buy. When the crude oil market trend is going up it is referred to as bullish, this is when a oil buy trade is placed. A bullish oil trend is identified by drawing an upward oil trend-line on a crude oil chart. The example explained below shows a long/buy oil trade signal.
Buy/Long
Sell/Short
If the crude oil price pair is going down we sell, this is referred to as going short. When the crude oil market trend is going down it is referred to as a bearish. The example explained below shows a downward trend, this is when a short sell is placed. The short/sell is identified by drawing a downward oil trend-line on a crude oil chart. The example explained below shows a short/sell oil trade signal.
Sell/Short - Oil Trading Buy Trade and Oil Trading Sell Trade
Crude Oil Trading Charts
A oil chart provides a visual representation of trading oil prices (drawn on the y-axis) against time (drawn on the x-axis) for oil. The movement of trading oil prices is drawn on these oil charts. The oil chart can be drawn as candlestick oil trading charts like the one below or as line oil trading charts or bar oil trading charts.
Oil Trading Chart - Candlesticks Oil Trading Charts
The three common types of oil charts used in oil trading are:
- Candlesticks Oil Trading Charts
- Line Oil Trading Charts
- Bar Oil Trading Charts
These 3 are explained in the topic Oil Trading Chart Types.
Oil Trading Platform
This is the oil trading software that is provided by a broker to help oil traders place their oil trade transactions. Once you download and installs this oil trading software on your computer you can then begin to trade in the Oil Trading market. All oil trading trade transactions are executed through this oil trading platform. If you want to learn a oil trading platform, MT4 Oil Trading Software is a good oil platform to start with.
To set these oil trading orders, open MT4 Crude Oil Trading Software, open a "chart", right click in the "chart", choose "New Order", then select the oil trading order either sell or buy as shown below. (Keyboard Short Cut Keys - Press F9 Key)
Setting Buy Long Oil Trading Order and Sell Short Oil Order in MT4
