Drawing The Correct Upward Trend Line Traders Most Important Skill

How to Draw Crude Oil Upward Trendlines on Oil Trading Charts

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

The example explained below shows how crude oil price moves when it is moving in a bullish upward oil trend market. The crude oil price will move upwards forming support areas.

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

A upward oil trend occurs when the fore crude oil price will continue making 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 Uptrend-lines gain more validity each time crude oil price touches this upward trend line but does not penetrate it. A upward 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 oil market moves up it forms higher highs & higher lows forming a bullish oil trend movement - Oil Upwards Trend. An upward oil trend line can then be drawn by connecting these higher lows.

To draw this oil upwards trendline we use support zones. To draw the oil upwards trend line correctly 2 support zones are needed. When crude oil price touches the upward oil trend-line we open buy oil trade & place stop loss oil orders just a few pips below the oil upwards trend line. Oil example explained below shows an example of an upward oil trend line.

Drawing The Correct Upward Trend Line Traders Most Important Skill - Day Trendlines Crude Oil Strategy - Drawing Oil Trading Trend Indicator MetaTrader 4

The upward oil trend line strategy will show the general oil trend direction of the market as upward - therefore oil traders will only open buy crude oil trades as long as crude oil price is moving within this upwards oil trend set-up within the support areas. These crude oil price support areas are levels where if the crude oil price retraces then these zones will provide strong supports for the oil price. This is why many oil buyers will wait until crude oil price retraces downwards & hits these oil trendline retracements zones so as to open buy crude oil trades. Oil trades opened at this support levels have a high Risk-:-Reward Ratio with minimum oil draw down -price retracement.

In the above oil upwards trend line oil trading strategy a trader would have opened buy crude oil trades from the oil signals generated at the support 1, support 2, support 3 and these crude oil trades would have made profits with minimum amount of oil draw down -price retracement.

Drawing The Correct Downwards Trend Line Traders Most Important Skill

How to Draw Crude Oil Downward Trendlines on Crude Oil Trading Charts

A downwards oil trend-line is plotted above the oil downwards trend pattern formed by consecutive lower crude oil price highs, the oil downward trend-line must connect at-least 2 crude oil price highs, with the most recent crude oil price high being lower. For our oil trading downward trendline example we shall use the MT4 oil technical analysis charts to illustrate example of downwards crude oil trend.

Since crude oil price moves downward in a zigzag manner oil traders normally draw a oil downward trend-line which shows the general downward oil trend direction of the oil prices. In oil technical analysis this general crude oil price direction is referred to as the Oil Trading TREND by crude oil traders. In oil technical analysis definition we can define oil downward trend-line is drawn on a oil chart showing the resistance areas bearish oil market trend trading direction.

Day Trend-Lines Oil Strategy - Drawing Oil Trading Trend Technical Indicator MT4

A oil downward trend occurs when the crude oil price forms series of lower highs and lower lows. Each oil price high is lower than the previous price high - lower high, and each crude oil price low is lower than the previous low - lower low therefore showing bearish crude oil price movement - downward crude oil trend.

Oil Trading Downwards trend-lines gain more validity each time crude oil price touches the downwards oil trend line but does not penetrate the oil trend line. A downward oil trend remains the general oil trend direction until this sequence of crude oil price lower highs and crude oil price lower lows is broken.

In oil technical analysis, An up side penetration of a oil downward trend line is a technical buy oil trading signal, and is usually the first signal that the bearish oil price trend may soon reverse.

Downwards Oil Trading Trend Line MT4 Trend Lines Technical Indicator

When it comes to learning how to draw oil trend lines correctly - you need to know that when the oil trend is bearish crude oil price forms lower crude oil price lows and lower crude oil price highs forming a general downwards oil market trend direction. These are the points that are used to draw the downwards oil trend line.

To draw this oil downwards trend-line we use resistance levels & to draw a downward oil trend line correctly 2 resistance areas are needed. When crude oil price touches this oil trend line, then we open sell crude oil trades and place stop loss oil orders just a few pips above the sloping resistances:

Trading This Downward Crude Oil Trendline

When oil trading with this oil trend line oil trading strategy, this oil trend line strategy will show the general oil trend direction of the market as downward therefore oil traders will only open sell crude oil trades. These oil trend-line zones are zones where if crude oil price retraces then these areas will provide strong resistance. This is why many oil sellers will wait until crude oil price retraces upward and hits these trend line retracements levels to open sell crude oil trades. Oil trades opened sell crude oil trades at these levels have a high Risk to Reward Ratio with minimum draw down.

For Example, in the above oil example, a trader would have opened sell crude oil trades at the resistance 1, resistance 2, resistance 3 & these sell crude oil trades would have made profits with minimum amount of oil draw down -price retracement.

Drawing Crude Oil Trading Trend Technical Indicator MT4

The Oil Trading Drawing Oil Trend-line Indicator MT4 oil tools to draw these oil trend lines on the MT4 platform are located on the MT4 drawing tool bar within the MT4 crude oil platform, To get this MT4 toolbar if it is not displayed on your oil MT4 trading software, Click in "View" Next to "File" on the top left corner of MT4 crude oil platform & click View, Then Click on Tool Bars, Then Check "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 points where you want to draw the oil trend line in MetaTrader 4 crude oil chart.

Drawing Oil Trading Trend Indicator MT4 - Drawing Oil Trading Trendline Technical Indicator MT4

This oil trend line strategy is one of the popular oil technical indicators used by crude oil traders to analyze the crude oil price trend trading direction.

Drawing The Correct Oil Trading Trend Line Traders Most Important Skill - Day Trading Oil Trend Lines Strategy - Drawing Oil Trading Trend-line Indicator MT4 - Drawing Trendline Crude Oil Trading Indicator MT4