Trading Oil Do Oil Trading Position Trading with Different Crude Oil Trading Chart Timeframes?
Chart Timeframes
Position Crude Oil Traders
These group of oil trading are the investors that hold on to their trades for weeks or months. With the objective of making a large number of pips, 300 - 1,000 pips.
Position oil trader using the daily oil chart timeframe wants to go short, checks weekly oil chart timeframe, weekly oil chart timeframe looks like the one below, since weekly oil chart shows the oil trend is going down, then decides from this technical analysis it's okay to sell.
Chart Time Frames - Example of Oil Trading Position Trade Oil Chart Time-frames
Oil Trading Position Traders using technical analysis use oil charts to try & attempt to predict the movement of crude oil price on the oil charts.
Oil Trading Position traders will sometimes use two or more oil chart time-frames so as to determine the long term oil trend & short term oil trend.
How to Define A Oil Trading Price Oil Trading Trend for Position Trading
Using a crude oil trading system that has 3 indicators - Moving Average Crossover System, RSI & MACD & using simple rules to define the oil trend. The trading rules are:
Upwards Oil Trading Trend
Both MAs Moving Up
RSI above 50
MACD Above Centerline
Downwards Crude Oil Trading Trend
Both MAs Moving Down
RSI below 50
MACD Below Centerline
Multiple oil charts time-frames analysis equals using 2 chart timeframes to trade crude oil trading - a shorter oil chart time-frame used for trading and a longer chart timeframe to check the oil trend - chart timeframes that you choose for trading crude oil price action with will depend on the type of trader you are: for Position Traders the chart timeframes used for trading will be an example of daily oil chart time-frame & weekly oil chart time frame.
Since it is always good to follow the oil trend when oil trading Position Trading, in Multiple Time Frame Analysis, the longer weekly oil chart timeframe gives us the direction of the long-term oil trend when Position trading using the daily Oil Trade Chart Time-frame.
