Trading Commodities Do Commodity Trading Position Trading with Different Chart Time frames?

Commodity Trading Position Trading on Multiple Commodities Trading Charts

Position Traders

These group of commodity are the investors that hold on to their trades for weeks or months. With the objective of making a large number of pips, 300 - 1,000 pips.

Position commodity trader using the daily commodity chart time frame wants to go short, checks weekly commodity chart time frame, weekly commodity chart time frame looks like the one below, since weekly commodity chart shows the commodity trend is going down, then decides from this technical analysis it's okay to sell.

Commodity Trading Position Trading on Multiple Commodities Trading Charts - Chart Time Frames

Commodity Trading Position Traders using technical analysis use commodity charts to try and attempt to predict the movement of commodities price on the commodities charts.

Commodity Trading Position traders will sometimes use two or more commodity chart time frames so as to determine the long term commodity trend and the short term commodities trend.

How to Define A Commodities Price Commodities Trend for Position Trading

Using a commodity system that has 3 indicators - Moving Average Crossover System, RSI and MACD and using simple rules to define the commodities trend. The trading rules are:

Upward Commodities Trend

Both MAs Moving Up

RSI above 50

MACD Above Centerline

Downward Commodities Trend

Both MAs Moving Down

RSI below 50

MACD Below Centerline

Multiple commodity charts time frames analysis equals using 2 chart time frames to trade commodity - a shorter commodity chart time frame used for trading and a longer chart time frame to check the commodities trading trend - the chart time frames that you choose for commodities price action with will depend on the type of trader you are: for Position Traders the chart time frames used for trading will be an example of daily commodity chart time frame and weekly commodity chart time frame.

Since it is always good to follow the commodity trend when commodity Position Trading, in Multiple Chart Time Frame Analysis, the longer weekly commodity chart time frame gives us the direction of the long-term commodity trend when Position trading using the daily Commodities Trading Chart Time Frame.