What Does Oil Trading Retracement Mean?

The crude oil price does not move up or down in a straight line. Instead the crude oil price moves up or down in a zigzag pattern called a oil trend

Upwards trend - the crude oil price moves upward in a oil trend then it retraces before resuming the upward oil trend direction

Downwards oil trend - the crude oil price moves downwards in the oil trend direction and then retraces before resuming the downwards oil trend direction.

What Does Oil Trading Retracement Mean? A crude oil price retracement is a pull-back of the crude oil price before the crude oil market resumes the original oil trend movement.

Oil Retracement Meaning and Oil Trading Retracement Meaning - Example of a Oil Trading Retracement Pattern

What Does Oil Trading Retracement Mean? - Oil Retracement Meaning and Oil Trading Retracement Definition

Explanation of Oil Trading Retracement Pattern

1-2: Oil Trading Price Moves Up - Oil Trading Trend Direction

2-3: Oil Trading Price Retracement

3-4: Oil Trading Price Moves Up - Oil Trading Trend Direction

4-5: Oil Trading Price Retracement

5-6: Oil Trading Price Moves Up - Oil Trading Trend Direction

The retracement definition of crude oil price is explained on the above example - this represents a oil retracement in an upwards crude oil trend.