Upward Oil Trading Trendlines & Channels

An upward oil trend line is drawn below the oil trend pattern by connecting at least 2 lows. This upward oil trend line will draw a line that show the general direction of the market.

The diagram below shows how crude oil price moves when it is moving in a bullish market. The crude oil price will move upward forming support levels.

Since the crude oil market moves in a zigzag manner oil traders normally draw a oil trend-line which shows the general upwards direction of the market.

A oil trading up oil trend occurs when the fore crude oil price will continue to form consecutive higher highs and higher lows. Each price high being higher than the previous high - higher high , and each low is higher than the previous low - higher low.

Oil Trading Up oil trend-lines gain more validity each time crude oil price touches this upward oil trend line but does not penetrate it. A oil trading up oil trend remains in place until this series of higher highs and higher lows is broken.

A downside penetration of an upward oil trend-line is a technical sell oil trading signal, and usually the first indication that an upward oil trend may soon end.

Drawing an Upward Crude Oil Trading Trend-line

When the crude oil market moves up it forms higher highs & higher lows forming a bullish market movement - Upward Oil Trading Trend. An upward oil trend line can then be drawn by connecting these higher lows.

To draw this upward oil trend line setup we use supports. To draw the upward oil trend line correctly two support zones are needed. When crude oil price touches the upward oil trend line we buy and place stop loss oil orders just a few pips below the upward oil trend line. The diagram below shows an example of an upward oil trend line.

The upward oil trend line setup will show the general direction of the market as bullish therefore oil traders will only open buy long crude oil trades as long as crude oil price is within this upward oil trend bullish market setup and within the support levels. These support levels are the levels where if the crude oil market retraces then these points will provide strong supports for the oil price. This is why many oil buyers will wait until crude oil price retraces downwards & hits these retracements levels market the upward oil trend line to open buy crude oil trades. Oil trades opened at this support levels have a high Risk to Reward Ratio with minimum draw down.

In the above upward oil trend line crude oil trading setup the trader would have opened buy/long crude oil trades from the signals generated at the support1, support2, support3 and these crude oil trades would have made a lot of trading profits with minimum amount of drawdown/retracement.

Upward Crude Oil Trading Channel

An upward oil channel is plotted by drawing a line that is parallel to the upward oil trend line and then adjusted to touch the tops boundary of the crude oil price movement. This then forms an upward oil channel & as long as the crude oil price stays between these two channels the bullish upward market movement will continue moving up.

Trading The Crude Oil Trading Channel

This upward oil channel is used by crude oil traders to show levels where it is best to take profits. Oil traders will take some profit once the crude oil price touches the upper channel & wait for another retracement before opening a long buy oil trading again.

Oil Trading Trend Lines MT4 Oil Trading Trend Line Indicator

The Crude Oil Trading MT4 Trend Line Indicator drawing tools to draw these oil trend lines and oil channels setups on the MT4 are located on the MT4 drawing tool bar within the MT4 crude oil trading platform, To get this MT4 tool bar if it is not activated on your oil trading software, Click in "View" Next to "File" on the top left corner of MT4 crude oil trading platform & click View, Then Click on Toolbars, Then Check the "Lines Tool-bar" by clicking on it.

Below is the screen shot Image of the MT4 drawing tool-bar. To draw a oil trend-line on a oil chart click on this MT4 oil trend-line drawing tool and select the point where you want to draw the oil trend line.

This is one of the learn crude oil trading analysis lesson among the many learn oil trading tutorials on this website located on the side navigation menu, where you will learn how to draw oil trend lines and analyze these oil trend lines setups.