10 Pips a Day Compounding Strategy
The 10 or 20 pips crude oil price range moving average indicator strategy is used with the 15 minute & 1 Hour Oil Trading Charts. On this oil chart time-frames we use the 100 & 200 simple moving average technical indicator.
Both the 1 Hour and 15 minute oil chart timeframes will use the 100 and 200 simple moving average indicator (SMA Indicator) to determine the direction of the Oil Trading trend.
The 1 Hour oil chart time-frame checks the long term direction of the Oil Trading trend, upward oil trend or downward oil trend, depending on the direction of the moving averages. All trades taken should be in this direction.
We then use the 15 minute crude oil price oil chart to find the optimal point to enter trades. Trades are opened only when the crude oil price is within 10 or 20 pips range of the 200 simple moving average indicator, if crude oil price is not within this pip range the trades are not opened.
Crude Oil Trading Uptrend/Bullish Market
To generate Oil Trading buy crude oil trading signals using the 10 or 20 pips moving average technical indicator oil trading strategy, we shall use the 1 hour and 15 minute oil chart timeframe.
On the 1 hour oil chart timeframe the crude oil price pair should be above both the 100 and 200 simple moving average indicator. We then move to a lower oil chart timeframe, the 15 minute oil chart timeframe to generate a oil trading signal.
On 15 minute oil chart timeframe, when crude oil price reaches the 10 or 20 pips range above the 200 simple moving average indicator, we open a buy oil trade & place a stop loss 20 pips below the 200 simple moving average indicator. Stop loss can be adjusted to the amount of Pips that are suitable for your trading method but to avoid being stopped out by normal Oil Trading volatility its best to use 20 pips stop-loss.
A buy oil trade can also be opened when crude oil price touches the 100 Simple moving average technical indicator, provided it is not set very far from the 200 SMA. Normally the 100 simple moving average indicator will be within the 10 or 20 pips range of the 200 simple moving average technical indicator.
100 and 200 Simple Moving Average Crude Oil Indicator Buy Signal
Oil Downtrend/Bearish Market
To generate Oil Trading sell crude oil trading signals using the 10 or 20 pips moving average technical indicator oil trading strategy, we shall also use the 1hour and 15 minute oil chart timeframe.
On the 1 hour oil chart timeframe, the crude oil price should be below both the 100 and 200 simple moving average indicator. We then move to the 15 minute oil chart timeframe to generate a oil trading Signal.
On 15 minute oil chart, when crude oil price reaches the 10 or 20 pips range below the 200 simple moving average indicator, we open a sell oil trade & place a stop loss 20 pips above the 200 simple moving average technical indicator.
100 and 200 simple moving average indicator Sell Trading Signal
With this oil strategy method crude oil price will generally bounce of these areas because many Oil traders watch these levels, and open similar trades at around the same point.
These areas act as short term resistance or support areas within the crude oil price oil charts.
Oil Trading Profit Taking level For This Crude Oil Trading Strategies
With this oil trading strategy the crude oil price will bounce & make a move in the direction of the original Oil Trading trend. This move will range from 50 - 80 pips.
Best profit-taking level would therefore be considered to be 50 - 60 pips from the 200 simple moving average technical indicator.
