How Do I Analyze Oil Trading Trend Line?

A oil trend line can be an upward oil trend-line or a downward oil trend-line.

An up oil trend-line is plotted by connecting 2 lows and the crude oil price lows are connected using straight line. This straight line shows that oil prices are heading upwards because this oil trend line slopes upwards - hence its name upward oil trend line. Oil traders then use this oil trendline as a support zone of the crude oil price. New buy crude oil trades are opened once the crude oil price touches the upwards oil trend line.

A down oil trend-line is plotted by connecting 2 highs and the crude oil price highs are connected using a straight line. This straight line shows that the oil prices are moving downwards because this oil trend line slopes downward - hence its name downwards oil trend line. Oil traders then use this oil trend line as a resistance zone of the crude oil price. New sell crude oil trades are opened once the crude oil price touches the downwards oil trend line.

Tutorial: How to Draw & Trade Upward Oil Trend Line

How Do I Interpret Oil Trading Trend-Line? - How Do You Interpret Oil Trading Trend Line?

Course: How to Draw & Trade Downwards Oil Trading Trend Line

Analysis of Oil Trading Trend Lines - Trendline Oil Trading