Where Should I set a StopLoss Oil Order using Support and Resistance Zones?

A trader can use support & resistance levels on the oil chart to determine where to place their stop loss oil orders using the techniques explained on the example below:

Setting Stop Loss Oil Trading Order using Resistance Levels

One way of setting stop loss oil orders is to use resistance levels, on the oil charts.

Given that stop loss oil trading orders tend to congregate at key points, when one of these resistance levels is touched by the oil price, other trading orders are set off.

Stop Loss orders tend to accumulate just above the resistance zones.

A resistance area should act like a barrier for crude oil price movement, this is why the resistance zone are used to set stop loss orders.

If this resistance level is broken the crude oil price movement can go towards the opposite direction of the original oil trend, but if this resistance level is not broken the crude oil price will continue heading in the intended direction.

Stop Loss Oil Trading Order Level Setting using Resistance Zones in Crude Oil Trading

Setting Stop Loss Oil Trading Order above the Resistance Level

Setting Stop Loss Oil Trading Order using Support Levels

Another way of setting stop loss oil orders is to use support levels, on the oil charts.

Given that stop loss oil trading orders tend to congregate at key points, when one of these support levels is touched by the oil price, other trading orders are set off.

Stop-loss orders tend to accumulate just below the support zones.

A support zone should act like a barrier for crude oil price movement, this is why these support levels are used to set stop-losses.

If this support level is broken the crude oil price movement can go towards the opposite direction of the original oil trend, but if this support level is not broken the crude oil price will continue heading in the intended direction.

Stop Loss Oil Trading Order Level Setting using Support Zones in Oil Trading

Setting Stop Loss Oil Trading Order below the Support Level