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Commodity Indicators That Traders Should Learn

There are different methods used to trade the commodity market, the most popular method being technical analysis and use of commodity indicators to analyze commodities price movement. When it comes to commodity technical analysis - commodity indicators are used to come up with various trading methods.

The most popular commodity indicators in the commodity market are:

1.Moving Average Indicator

2.MACD Indicator

3.RSI Indicator

4.Stochastic Oscillator Indicator

5.Bollinger Bands Indicator

Moving Average Technical Indicator

Moving average commodity indicator is used to determine commodity market commodity trend direction. This Moving Average technical indicator calculates the moving average of commodities prices over a specified period of time. This moving average indicator is a commodity trend following commodity indicator that shows the direction of the market. Once a trader determines the direction of the market they can then know whether to open buy or sell commodities trades.

Moving averages are placed on the commodities charts & can be used to generate commodity signals using the following techniques.

Moving Average Commodity Indicator - Technical Indicators

RSI

RSI technical indicator is used to determine the momentum of a commodities trend. The RSI indicator shows commodities prices are closing higher than where they open when the RSI indicator is above 50 center mark and this means commodities traders should open buy commodities trades. When RSI indicator is below 50 center mark it means commodities prices are closing lower than where they open and commodities traders should only open sell commodities trades.

The RSI technical indicator can also be used to determine overbought and oversold levels. Overbought levels is when the RSI indicator is above 80 mark & oversold levels is when the RSI indicator is below the 20 mark.

RSI can be used to generate commodity signals based on the following techniques:

RSI Commodity Indicator - Technical Indicators Guide

Bollinger Band Indicator

Bollinger Bands indicator is used to determine the commodity market commodity trend direction as well as the upper commodities price band lower commodities price band that calculate the band within which commodities trading price should move along within. These upper band lower band can be used to open commodities trades and also to calculate where to close open commodities trades.

Bollinger Bands indicator can be used to generate commodity signals based on the following techniques:

Bollinger Bands Commodity Indicator Discussed

MACD Indicator

MACD indicator is used to determine the momentum of commodity market trends, MACD indicator levels above 50 center mark means that commodities price is bullish while MACD indicator below 50 center mark means that commodities price is bearish.

MACD indicator can be used to generate commodity signals based on the following techniques:

MACD Commodity Indicator - Understanding Commodity Technical Indicator MACD

Stochastic Oscillator Technical Indicator

Stochastic Oscillator indicator is commonly used to determine overbought and oversold levels. These overbought and oversold indicators levels are used by commodities traders to determine where to open commodities trades & also when to close commodities trades.

Stochastic Oscillator indicator can be used to generate commodity signals based on the following techniques:

ยทStochastic Oscillator - Commodities Technical Indicators Guide

The above commodity technical indicators are the most commonly used technical indicators in the commodity market that commodities traders should learn. The knowledge of these commodity chart indicators will help commodities traders to come up with effective commodity techniques and commodity strategies for trading commodity.

Traders can also combine these indicators so as to come up with the Best Combination of Indicators for Commodities and best commodity indicators for creating a commodity system. For example Stochastic Commodity System - Best Combination of Indicators for Commodity Trading System Example shows commodity traders an example of how to come up with a commodity system. The commodity trader will then come up with written commodity rules of how to generate buy & sell commodity signals using this commodity indicator based commodity system. A trader will also have trading rules that will determine when they should close trades, where they will be setting take profit levels & where they will set stop loss levels.


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