Trading Crude Oil Draw a Oil Trading Trend-Line on a Chart

Oil Trading How to Draw a Oil Trading Trend-Line on a Chart - How to Draw Oil Trendlines on Crude Oil Trading Charts

Principles of How to Draw a Oil Trading Trend Line on a Chart

1. Use candle oil charts to draw oil trend lines

2. The points used to draw a oil trend-line on a oil chart are along the lows of the crude oil price bars in a bullish oil market. An upwards bullish oil trend is defined by higher highs & higher lows.
3. The points used to draw a oil trend-line on a oil chart are along the highs of the crude oil price bars in a bearish oil market. A downward bearish oil trend is defined by lower highs and lower lows.
4. The points used to draw oil trend lines on the crude oil charts are the extremes points - the high or the low oil price. These extremes are important because a close beyond the extreme chart points tells oil traders the oil trend of the oil instrument might be changing. This is an entry or an exit oil signal.
5. The more often a oil trend-line on a oil chart is hit but it's not broken, the more powerful its oil trend signal.

Example 1: How to Draw a Oil Upwards Oil Trading Trend Line on a Chart

To draw an upward oil trend-line on a oil chart use two support points in a bullish upwards oil trend so as to draw the upwards oil trend line and then extend the oil trend line as displayed below. Upward oil trend-line on a oil chart will show the general direction of oil prices and as long as crude oil price is above this upwards oil trend line then the upwards oil trend will remain intact - bullish upward oil trend.

If oil prices move below the upward oil trend line which is the support level for the bullish upwards oil trend then crude oil traders should close all their open crude oil trades - because this might be a oil trend reversal trading signal. In an upwards oil trend crude oil price should generally stay above support level which is marked by the upwards oil trend line on the oil charts.

Draw a Oil Trading Up Oil Trading Trend-Line on a Chart in Oil Trading

How to Draw an Upward Oil Trading Trendline on a Chart - How to Draw a Oil Trading Trend-Line on a Chart

Example 2: How to Draw a Oil Downwards Oil Trading Trend Line on a Chart

To draw a downwards oil trend-line on a oil chart use two resistance points in a bearish downwards oil trend so as to draw the downwards oil trend line and then extend the oil trend line as displayed below. Downwards oil trend-line on a oil chart will show the general direction of oil prices and as long as crude oil price is below this downward oil trend line then the downwards oil trend will remain intact - bearish downward oil trend.

If oil prices move above the downwards oil trend line which is the resistance level for the bearish downwards oil trend then traders should close all their open crude oil trades - because this might be a oil trend reversal trading signal. In an downward oil trend crude oil price should generally stay below the resistance level which is marked by the downward oil trend-line on a crude oil chart.

Draw a Oil Trading Down Oil Trading Trend-Line on a Chart in Oil Trading

How to Draw a Downward Oil Trading Trendline on a Chart - How to Draw a Oil Trading Trend-Line on a Chart