A simple daily moving average analysis can give us a very reliable source of risk management during our intraday trading planning period.

Short term and long term moving averages always provide a classic reference for daily and intraday traders. Classic methodology prefers a defined daily trend for swing trading, but moving averages also provide an excellent support to manage risk for intraday traders.

Let us take a look at the a crude oil daily chart (06/09/2020) to see what we are talking about.

Crude Oil Daily Chart provided by NinjaTrader, Visual Alerts provided by TradingTotal

Marked rectangles are highlighting congestive areas where daily bars show overlapping areas with several inside bars.

The proposed analysis consists in identifying areas where short moving averages such as 5 EMA for example, is in horizontal or flat position to determine days where there is no daily trend. From the fundamental point of view, this flat short term EMA technical situation means that swing traders and possibly some core traders, are not taking new daily positions.

So, day traders will not have the important support from larger time frame traders.

At the same time, risk could be increased if we face longer term moving averages, such as the 100 EMA (green line) during the current second week of June, on the  Crude Oil daily time frame.

Note the last shown crude oil prices going into the referred 100 EMA as a resistance to limit the current strong up-trending move. This technical situation is clearly responsible for the current crude oil intraday sideways situation, which means more volatility, and obviously, more risk to be stopped out during our intraday trading activity.