What Can Be Done Next For Crude Oil
At present the world oil price is the main problem that needs to be considered because it is one of the hottest things in trade and has been going on for some time. Oil prices experienced a very sharp decline in 2016, if previously the price of a barrel was around $ 100, now the price per barrel fell to less than $ 30. The decline of the most important commodity such as crude oil is actually normal.Even some people who try to open the internet find that oil prices will eventually drop to $ 10 per barrel. Analysis of oil supply is really an important issue, unlike currencies where supply is not an increase factor in Crucifixion.
Fundamental analysis and supply both have important roles in trading commodities such as crude oil, but the authors believe that the best thing that crude oil traders do in the face of falling prices is to ignore this speculation, at least until the price chart starts to change. Fundamental analysis must be used as confirmation of technical analysis, not vice versa. Traders try to convince themselves that choosing the lowest price will provide profits, then they will sit down to wait for prices to return to either $ 100 per barrel. Of course there is something wrong with this approach so it is very difficult to know where to start.
When the oil market has moved, the most likely thing you do is to follow where the trend is going. If you follow, you can statistically place profitable opportunities with short trades, betting if the price of crude oil will go down, instead of trading long.
“CAN’T GET LOWER”
We often hear this, why can’t oil prices fall lower than $ 20 or $ 10 or another amount? Of course there is logic here, because crude oil has intrinsic value and there must be a price below that which is very unlikely to change. But there is no point in speculating because you might not be able to do it right. There is a saying that “prices never go too high or too low to be able to drop lower”. Trade with trends, until Bend In the End! You may have heard “trade with trends” a thousand times before, but have you acted on that? After all, it’s no longer profitable to sell oil instead of being a heroic buyer, but most likely you are still selling it. Of course you sell it at a low price even though you will lose the opportunity to trade.
If prices go down and up, you start buying at a higher price, but why do you care more about buying a price of $ 35 than $ 25, if later the price will rise to $ 100? Of course you will usually save and wait for the trend to change.
HOW TO MEASURE AND SELL CRUDE OIL TRENDS
Traders sometimes make themselves confused by trying to use many tricks to follow trends. In fact, you can simplify it and ask yourself “is the price higher or lower than 6 months ago, 3 months ago, or 1 month ago? if the answer is about 6 months, 3 months or 1 month mixed, you could say there are no trends that you can follow. But if the answer is appropriate, of course you have a very strong trend with lots of momentum. There is a trend that up to now the market is clear and can be utilized. Never try to be a hero, place opportunities to benefit you and trade with the right trends.