Crude oil trading strategy in Malayalam

MCX Crude oil trading strategy

Are you looking to improve your crude oil trading strategy? Look no further. In this article, we will delve into the intricacies of crude oil trading and provide you with valuable insights to optimize your trading approach. Crude oil trading is an essential part of the global economy, with prices fluctuating daily due to various geopolitical and economic factors. A well-crafted trading strategy can help you navigate these changes and potentially capitalize on market opportunities. In this guide, we will explore a trading strategy and analyze their pros and cons. Whether you are a beginner or an experienced trader, you will find valuable tips and techniques to enhance your trading skills and decision-making process. We will also discuss the importance of staying up to date with market news and trends, as well as utilizing technical analysis tools to identify potential trade setups. Additionally, you will learn about risk management techniques to protect your capital and maximize your profits. By the end of this article, you will have a solid foundation to develop your own successful crude oil trading strategy. You will have to watch the video also to get all the information needed. So, let's dive in and unlock the potential of this exciting market.

I have given a Malayalam video about crude oil trading strategy below. It is taken from our youtube channel Share Market Malayalam by Muhammad Riyas.

Share market malayalam youtube channel's this video is about crude oil trading strategy in Malayalam. Eventhough you can find various crude oil strategies in Hindi, and Tamil, there aren't many videos in Malayalam about commodity trading or crude oil trading.
This video explains a crude oil intraday strategy using camerilla pivot points. Pivot points are commonly used indicator in intraday trading. Some use traditional, fibonacci or camerilla pivots. This strategy used weekly camerilla pivot points and 15 minute pivot levels. Its a high probability strategy with good risk reward if you use it properly. Weekly pivots acts as strong levels of support or resistance in chart. Its clearly shown in video. Strategy is developed based on that concept mixed with a 15 minute pivots. If you want we can discuss more crude oil strategies in coming videos.

Another Simple Yet Effective Crude Oil Trading Strategy for Indian Traders

Crude oil is one of the most actively traded commodities in Indian markets. With high volatility and profit potential, it attracts hordes of active traders every day. However, consistently making money in crude oil futures requires following an edge-providing trading strategy. If executed properly, such a strategy can help you book regular profits irrespective of market conditions. This article talks about one such simple yet effective crude oil trading strategy that Indian traders can use.

Using Volume Weighted Average Price (VWAP)

The strategy is based on a key concept - Volume Weighted Average Price (VWAP). VWAP is a commonly used indicator by intraday traders. As the name suggests, it provides the average price of a commodity weighting higher volumes more. So in crude oil, if a particular price level sees huge trading volume, VWAP gives more weightage to it.

VWAP acts as a reference to identify value zone on crude oil charts. When price reaches VWAP levels, it usually results in a small pullback or bounce. We are going to use this tendency of price respecting VWAP to identify low risk trading opportunities.

Entry Rules 

Buying Rules Our first trading rule will be to buy when the crude oil price takes support and bounces back from VWAP levels. This bounce back itself indicates the bullishness is likely to continue. We will enter long when the prior candle forming near VWAP closes above the high of last three candles.

Selling Rules 

On the sell side, we will look for VWAP acting as a resistance. If the crude oil price struggles to move above VWAP and starts reversing lower, it shows bears are active. Our short entry rule will be to go short when price closes below prior three candles after hitting VWAP resistance.

Strict Stop Loss Rules 

Proper risk management is key to survive and thrive as a trader. So we will use strict stop loss rules along with the defined entry guidelines.

Our stop loss on long trades will be kept just below the low of the reversal candle that triggered our buy entry. And on the short side, we will place the stop loss above the high of the candle closing below VWAP resistance.

Following these stop loss rules ensures our risk on every trade stays contained. When you focus on risk first, managing profits becomes easier. As the saying goes - cut your losses short and let your profits run.

This straightforward approach of using VWAP's tendency to act as value area gives us a high probability crude oil trading strategy. Follow the defined entry rules and stop loss guidelines, practice proper risk management, and it can profitably work in all types of Indian crude oil market scenarios.

To conclude, crude oil is one of the most traded commodity in MCX. Two different sized contracts of crude oil are available in MCX to trade. Furst normal crude oil with 100 barrel lot size and and crude oil mini with 10 barrel lot size. We can trade crude oil intraday or positional trades. Crude oil is famous or infamous for its violent moves in invetory data release days. Some people use this moves also with a risk defined strategy. Pivots or pivot trading methods is a commonly used method in crude oil trading. Many types of pivots are also available. Traditional pivots, fibonacci pivots and camerilla pivots are most commonly used in crude oil trading. CPR method crude oil trading is gaining popularity now. I will make a video on that topic soon. 

Open a free commodity trading account with upstox or Fyers now with links below


Upstox account opening link


Fyers account opening link
Know more about commodity trading for beginners. Watch this post and embedded video about commodity trading in malayalam.

Check out our share market malayalam youtube page for more share market related videos in Malayalam

Post a Comment