Multiple Time-frame Oil Trading Analysis in Oil Trading

Multiple time-frame oil analysis equals using 2 oil chart time-frames to trade oil - a shorter oil chart time-frame used for trading & a longer oil chart time-frame used to check the crude oil trend.

Since it is always good to follow the oil trend when oil trading, in Multiple Time Frame Oil Trading Analysis, the longer oil chart time-frame gives us the direction of the long term crude oil trend.

If the long term oil trend direction supports the direction of the smaller oil chart time-frame then probability of opening a profitable oil trade is significantly increased. This is because even if you make a mistake the long term oil trend will eventually save you. Also if you trade with the direction of oil trend, then mostly you will be on the winning side - this is what this Multiple Time-frame Crude Oil Trading Analysis is all about.

Remember there is a popular saying by many oil traders that says: "The oil trend is your friend" - never go against the oil trend when trading.

There are four different types of oil traders - all these different types of oil traders use different chart time frames to trade as illustrated below.

Examples of how each type of Oil trader uses multiple Crude Oil chart Time-frames analysis strategy:

Crude Oil Trading Scalpers

Scalpers hold on to their crude oil trades for only a few minutes. The scalper oil trader never holds onto a crude oil trading trade for more than 10 minutes. With the objective of making small amounts of pips as profit, 5 pips - 15 pips.

A Scalper using 1 min oil chart wants to go long, checks 5 minute oil chart, which looks like the one below, since 5 minute show oil trend is going up, then decides from this technical analysis it's okay to buy.

Best Timeframe for Scalping Oil Trading

Oil Trading Day Traders

Day oil traders hold on to their open crude oil trades for a few hours but not more than a day. With the aim of making quite a number of pips profit, 30 to 60 pips.

Crude Oil Trading day trader trading 15 minute crude oil chart wants to go long, checks 1 hour crude oil chart, which looks like the one below, since 1 hour shows oil trend is going up, then decides from this technical analysis it's okay to buy

Best Timeframe for Day Trading Crude Oil - Best Timeframe for Intraday Trading Oil

Swing Traders

Swing oil traders hold on to their open crude oil trades for a few days to a week. With the aim of making a large number of pips profit, 100 to 250 pips.

Swing trader using 1 hour oil chart wants to go short, checks 4 hour oil chart, which looks like the crude oil trading example explained below, since 4 hour shows the oil trend is going down, then decides from this technical analysis it's okay to sell.

Best Timeframe for Swing Trading Crude Oil - Best Timeframe for Swing Trading Oil

Position Crude Oil Traders

Position oil traders are traders who hold onto their crude oil trades for weeks or months. With the aim of making a large number of pips profit, 300 to 800 pips.

Position oil trader using the daily oil chart wants to go short, checks weekly oil chart, weekly looks like the one below, since weekly shows the oil trend is going down, then decides from this technical analysis it's okay to sell.

Best Timeframe for Positional Trading Oil

How to Define A Oil Trading Trend

Using a crude oil trading system that has 3 oil indicators - Moving Averages Crossover System, RSI Crude Oil Trading Indicator and MACD Crude Oil Technical Indicator - and uses simple rules to define the crude oil trend. The rules are:

Upwards Crude Oil Trading Trend

Both Moving Averages Moving Up

RSI Oil Indicator Above 50

MACD Oil Indicator Above Centerline

Downwards Oil Trading Trend

Both Moving Averages Moving Down

RSI Oil Technical Indicator Below 50

MACD Oil Indicator Below Centerline