T3 Moving Average Commodities Technical Analysis and T3 Moving Average Trading Signals
T3 uses a Smoothing factor/technique to produce trading signals that are similar to those of the moving averages, but are more accurate than those of the Moving Average. The T3 is a modification of method used to calculate the original MA and it has a smoother curve and it does not lag the commodity market as much as the Moving Average. This Indicator follows commodities price action and adjusts itself to the direction of the market.
Commodity Technical Analysis & Generating Trading Signals
The T3 moving average is similar to the original MA, and it can be traded in the same way as the original MA indicator.
Moving Average Commodity Trading Crossover Trading Signal
This Method involves using two T3 MA and generating trading signals when the 2 cross each either upwards generating an upwards commodity trend signal or cross downward generating a downward commodity trend Signal.
Crossover Signal
Bullish Commodities Trend - Commodities Prices are bullish as long as commodities price action remains above the indicator. When this move happens it implies that commodities prices are bound to continue moving upwards.
Bearish Trend - Commodities Prices are bearish as long as commodities price action remains below the T3 Average. When the commodities price is below the indicator it implies that commodities price is bound to continue moving downwards.
Whipsaws - This is a smoothed indicator which is not prone to giving out whipsaws, since it's smoothed it's less responsive to commodities price spikes, therefore a commodities price spike will not skew the data used to calculate & draw it.