Commodity Trading 20 Pips Commodities Price Range Moving Average Strategy

20 Commodity Trading Pips Commodities Price Range Moving Average Trading Strategies

The 20 pips trading price range moving average commodity strategy is used with the 1 Hour chart and 15 minute commodity chart. On this chart time frames we use the 100 and 200 simple moving average technical trading indicator.

Both the 1 Hour and 15 minute commodity chart time frames will use the 100 and 200 SMA (SMA Indicator) to determine the direction of the Commodities trend.

The 1 Hour chart time-frame checks the long-term direction of the Commodities trend, upward or downward trend, depending on the direction of the moving averages. All trades taken should be in this trend direction.

We then use the 15 min commodity chart to find the optimal point to enter trades. trades are opened only when the trading price is within 20 pips range of the 200 simple MA, if trading price is not within this pip range trades are not opened.

Commodity Trading Uptrend/Bullish Market

To generate buy (bullish commodity signals) using the 20 pips moving average Commodity Trading strategy, we shall use the 1hour and 15 minute chart time-frame.

On the 1 hour chart time-frame the price of the chart should be above both the 100 and 200 simple moving average. We then move to a lower chart time frame, the 15 minute chart time frame to generate a trade signal.

On 15 minute commodity chart time frame, when trading price reaches the 20 pips range above the 200 SMA, we open a buy commodity trade and place a stop loss 30 pips below the 200 SMA. Stop loss can be adjusted to the amount of Pips that are suitable for your risk but to avoid being stopped out by normal Commodity Trading volatility its best to use 30 pips stop loss.

A buy commodity trade can also be opened when the trading price touches the 100 Simple moving average, provided it's not very far from the 200 SMA. Normally the 100 SMA will be within the 20 pips range of the 200 SMA.

100 and 200 Simple Moving Average Commodity Trading Buy Trading Signal - Moving Average Strategy

Commodity Trading Downtrend/Bearish Market

To generate sell (short signals) using the 20 pips moving average Commodity Trading strategy, we shall also use the 1 hour chart time frame and 15 minute chart time-frame.

On the 1 hour chart time frame, the trading price should be below both the 100 and 200 SMA. We then move to the 15 minute commodity chart time frame to generate a commodity Signal.

On 15 minute commodity chart, when trading price reaches the 20 pips range below the 200 SMA, we open a sell commodity trade and place a stop loss 30 pips above the 200 simple moving average.

100 and 200 Simple Moving Average Commodity Trading Sell Signal - Moving Average Method

With this commodity strategy method trading price will generally bounce of these support and resistance levels because many commodity traders watch these levels, and open similar trades at around the same point.

These support and resistance levels act as short term resistance or support levels within the price charts.

Profit Taking level For This Strategy

With this commodity strategy the trading price will bounce and make a move in direction of the original Commodities trend. This move will range from 60 - 70 pips.

The best commodity profit taking level would therefore be considered to be 60 to 70 pips from the 200 SMA.