Oil Indicators That Are Used To Interpret The Market

Best Oil Indicators for Intraday Trading - To trade the crude oil market - traders must find a way to analyze the crude oil price movement and oil trends. One way of analyzing the crude oil market is to use crude oil analysis - this is a method of analyzing crude oil price moves using crude oil charts and oil technical indicators in order to determine the oil trend of the crude oil price. The oil trend can be upwards or downwards and a trader will open a buy or sell oil trade depending on the oil trend direction.

There are many types of technical oil indicators that can be used to determine the crude oil market direction or analyze the momentum of the crude oil trend. A trader needs to know these indicators so as to know when to use one or the other indicator when trading oil.

Understanding Oil Indicators PDF Tutorial

Oil Trading Trend Following Indicators

These oil trend following technical indicators are use to determine the oil trend of the crude oil market. These oil chart indicators will show the general direction of the market that can be downwards or upwards. The oil trend is what determines what side of the crude oil market has more traders. Oil traders should always trade with the crude oil market oil trend as this oil trend shows the direction that has more momentum - and in oil , once a oil trend is formed oil prices are likely to keep moving in the direction of the oil trend because the oil trend will have momentum.

There are various oil technical indicators that are used to show this oil trend direction and to analyze the momentum of this oil trend - these indicators are known as oil trend following crude oil indicators. These oil trend following technical indicators are:

Moving Averages Oil TradingTechnical Indicator - moving average oil indicator is one of the most widely used oil technical indicators in the crude oil market. This moving average oil indicator is a oil trend following indicator that shows the moving average of crude oil price. When oil prices are moving upwards the moving average technical indicator will also move upward and when oil prices are moving downwards the moving average technical indicator will also be heading downwards.

The most common technique of using this moving average indicator is to use two moving averages that form a moving average cross over crude oil trading system. This moving average crossover oil trading system will generate buy or sell crude oil trades using the following technique:

Buy oil signal - when both moving averages are moving upward

Sell oil signal - when both moving averages are moving downwards

The two moving averages will be comprised of one moving average with a shorter crude oil price period and another with a longer crude oil price period - for example the 5 day moving average and the 7 day moving average combine to form a moving average crossover crude oil trading system. When the crude oil market oil trend changes the moving average crossover oil trading system will also change direction. Before this moving average crossover oil trading system changes the direction - the two moving averages will cross over each other and this will be used as a signal that the crude oil market direction is about change.

Traders can learn more about the moving average cross over oil trading strategy from the oil trade strategies section found on this website.

There is also the popular 200 day moving average indicator used to determine the long term oil market trend, when crude oil price is above this 200 day moving average -prices are bullish and when oil prices are below this 200 day moving average - the oil trend is bearish.

Oil Trading Trend Confirmation Indicators

Oil Trading Trend confirmation oil indicators include the MACD indicator & the RSI indicator. These two oil indicators are used to confirm the oil trend direction after a new oil trend has developed. These oil indicators provide additional information about the momentum of a oil trend and these technical indicators help the traders to know if a oil trend has enough momentum to continue moving in the current direction. If a trading signal is generated by a oil trend following system - the trader will decide whether to trade that signal after it has been confirmed by these oil trend confirmation oil indicators.

RSI - RSI technical indicator will confirm a buy oil signal once the RSI indicator moves above 50 center mark and this will show that on average oil prices are closing higher than where they are opening, while RSI technical indicator will confirm a sell oil signal once the RSI moves below the 50 center mark because this shows that oil prices are generally closing lower than where they opened.

MACD – MACD indicator will confirm a buy oil signal once the MACD line moves above the center line mark and this will show oil prices are closing higher and it will confirm a sell oil signal once the MACD line moves below the center mark because this will show oil prices are closing lower.

Therefore, the oil trend following technical indicators & oil trend confirmation indicators are used together to generate reliable oil signals.

Best Oil Indicators for Intraday Oil Trading - Best Indicators to Use in Oil Trading - Best Technical Indicators for Oil Trading Technical Analysis.