Recursive Moving Trend Average Oil Technical Analysis and Trading Signals

This Indicator is calculated using a math polynomial fit, the formula is referred as a Recursive Moving Polynomial Fit.

This formula used to calculate this indicator only requires a small set of previous data to calculate and predict the next direction of crude oil price movement. The example explained below shows two Recursive Averages combined to form a crossover crude oil trading system method.

Crude Oil Trading Technical Analysis & Generating Trading Signals

The best technical analysis technique is the cross over technique where you can combine 2 recursive averages, such as the 14 & 21. When the 2 cross overs each other upward then that is a bullish trading signal while a downwards crossover is a bearish trading signal.

Buy Sell Trading Signal

The Recursive Average looks similar to the traditional moving average, the only difference is that is much smoother due to the method of calculation that it uses and much less prone to whipsaws.