Technical Analysis of Moving Average Technical Indicator
Commodity Trend Identification
The commodity moving average technical indicator can be used as an technical indicator for generating commodity signals. A buy or sell commodities trading signal is generated when commodities trading price either moves above or below the moving average, respectively.
If the MA is heading upward in diagonal manner then the general commodity market commodity trend is upward.
If the on the other hand the MA is heading downwards in diagonal manner then the general commodity market commodity trend is downwards.
Upward Commodities Trend/Bullish Trend
If the MA is moving up, then the commodity trend is upwards and the signal generated is a buy/bullish commodities trade signal.
As long as the commodities trading price is above the moving average then the commodity trend will remain as an upward trend. The moving average will act as a "support level" and commodities trading price action of the commodities chart candlesticks should not close below the Moving Average.
Buy Trading Signal
When the commodities trading price moves above the MA and closes above the moving average, a buy commodity signal is generated.
Commodities Traders, who want to confirm the commodity trade signal before implementing it, should wait until the MA line turns and starts to move in an upward commodity trend direction. It's always best to wait for confirmation commodity signal so as to reduce chances of a commodity whipsaw.
Upwards Commodities Trend - How to Day Trade Commodities: A Detailed Guide to Day Trading Strategies
Downwards Commodities Trend/Bearish Market
If the MA is moving down, then the commodity trend is downwards and the signal generated is a sell/short commodities trade signal.
As long as the commodities trading price is below the MA then the commodity trend will remain as a downward bearish Commodities trend. The MA will act as a "resistance level" and commodities trading price action of candlesticks should not close above the Moving Average.
Sell Trading Signal
When the commodities trading price moves below the MA and closes below the moving average, a sell commodity signal is generated.
Traders who want to confirm the commodity signal should wait until the MA line turns and starts to move in a downward direction. This will reduce the chance of trading a commodity whipsaw.
Downwards Commodities Trend - How to Day Trade Commodities: A Detailed Guide to Day Trading Strategies
Commodity Trading Range Market trading signals
Range Commodities Market signals can also be identified using the Moving Average Commodity Indicator.
Moving Average Crossover Method Strategy
The moving average crossover method is also another commodities trading signal generation strategy that is more favored by commodity traders compared to the above commodity signal generation strategy method. Moving average crossover commodity strategy is also the simplest form of a commodity system widely used by online commodities traders. This MA crossover method is combined with other technical indicators to form more complex commodity systems and commodities trading strategies.
