Oil Trading Price Action 1-2-3 Oil Trading Price Action Strategy in Oil Trading
Oil Trading Price action trading is the use of only crude oil price charts to trade Oil Trading, without the use of technical chart technical indicators. When trading with this crude oil price action trading strategy, candlestick crude oil charts are used. This strategy uses lines and pre-determined patterns such as the 1-2-3 oil price action pattern oil strategy described below.
Traders use this crude oil price action strategy because this analysis is very objective & allows the one to analyze the crude oil price moves based on what they see on the oil charts market movement analysis alone.
This crude oil price action strategy is used by many oil traders: even those that use technical indicators also integrate some form of crude oil price action in their oil trading strategy.
The best use of this crude oil price action strategy is achieved when the crude oil price action trading signals generated are combined with line studies so as to provide extra confirmation. These line studies include oil trend lines, Fibo retracement, support and resistance levels.
Oil Trading Price Action Trading
Oil Trading Price action strategy uses three oil chart points to determine the break out direction of crude oil price. The 1-2-3 crude oil price action strategy uses a peak and a trough, these chart points forms point 1 & point 2, if market moves above the peak the crude oil price action signal is long, if it moves below the trough the crude oil price action trading signal is to short. Break out of point 1 or point 2 forms the third chart point.
Oil Trading Price Action Trading - Oil Trading Price Action Strategy Intraday Oil Trading Strategies
Series of breakouts on Crude Oil Trading Chart
Oil Trading Price Action Trading - Oil Trading Price Action Strategy Intraday Oil Trading Strategies
Oil traders use crude oil price action to try and predict where a oil trend direction might go. The oil market is either trending or ranging.
A trending market moves in a specific direction while a range market moves sideways, normally after hitting a support or resistance zone.
Observing the behavior of crude oil price action provides this data of whether the crude oil market is trending or ranging or reversing its direction.
As with any other Oil Trading strategy this crude oil price action strategy should also be combined with other confirming indicators to avoid whipsaws. The 1-2-3 pattern can give good signals in a trending market but will give whipsaws when the crude oil market is ranging, it is best to determine if the crude oil market is trending or not before you start using this strategy.
