Multiple Time-frame Oil Trading Analysis PDF
Multiple time-frame oil analysis equals using 2 oil time frames to trade oil - a shorter oil time frame used for trading & a longer oil 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 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 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 oil time frames to trade as shown below.
Examples of how each type of Crude Oil trader uses multiple Timeframes Crude Oil analysis strategy:
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 oil chart show oil trend is heading upwards, then decides from this crude oil trading analysis it is ok to open a buy oil trade transaction.
Multi Timeframe Oil Trading Scalping Oil Trading
Crude 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.
Oil Trading day trader trading 15 minute oil chart wants to go long, checks 1 hour oil chart, which looks like the crude oil chart below, since 1 hour oil chart shows oil trend is heading upwards, then decides from this crude oil trading analysis it is ok to open a buy oil trade transaction.
Multi Timeframe Oil Trading Day Oil Trading - Multi Timeframe Oil Trading Intraday Oil Trading
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 chart example explained below, since 4 hour oil chart shows the oil trend is moving downwards, then decides from this crude oil trading analysis it is ok to open a sell oil trade transaction.
Multi Timeframe Oil Trading Swing Oil Trading - Multi Timeframe Oil Trading Swing Oil Trading
Position 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 crude oil chart example explained below, since weekly oil chart shows the oil trend is moving downwards, then decides from this crude oil trading analysis it is ok to open a sell oil trade transaction.
Multi Timeframe Oil Trading Positional Oil Trading
How to Define A Oil Trading Trend
Using a crude oil trading system that has 3 crude 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
