Trailing Stop Loss Crude Oil Order Levels Oil Trading Technical Analysis & Trailing Stop Loss Crude Oil Trading Order Levels Trading Signals

Developed by Tushar Chande.

This is a volatility based technical indicator that's used to estimate levels to set stop-loss levels. Distance at which it estimates the trailing stop level is decided based on market volatility.

The Levels of the 2 lines, these two lines represent:

• Long Stop Level - Blue Line
• Short Stop Level - Red Line

Long stop level line has much wider range in terms of where it trails stop loss as compared to short stop level that implements a tight stop loss.

This technical indicator is volatility based when it comes to trailing and following the crude oil price action. Trailing Stop Levels will trail the above the crude oil price in a downward market oil trend and trails below the crude oil price in an upward market trend.

Crude Oil Technical Analysis & How to Generate Trading Signals

These will be calculated using volatility to calculate where to draw the indicator - this is used to determine what levels to set stop losses.

Upwards Crude Oil Trading Trend

In an upward oil trend these levels will follow below the crude oil price. The trader can use either the short stop level line to set up a tight stop or the long stop level to set a stop loss that is not very tight. As the crude oil price goes higher the trailing level also goes higher. An exit signal is generated when crude oil price crosses below these levels.

Oil Trading Uptrend

Downwards Oil Trading Trend

In a downwards oil trend the stop loss levels will trail above the crude oil price this two levels can be used to set these levels. As the crude oil price drops further these levels will continue to drop lower and follow the crude oil price lower. An exit signal is generated when crude oil price crosses above these levels.

Oil Trading Downtrend

When crude oil price starts to retrace these levels will not retrace but will remain at their levels, this will mean at some point the trade will be closed by the trailing stop loss.