Trading Commodities Do Commodity Trading Position Trading with Different Chart Time Frames?
Commodity Trading Position Trading on Multiple Commodities Trading Charts
Position Commodities 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 Trade Charts - Chart Time-frames
Commodity Position Traders using technical analysis use commodity charts to try & 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 & the short term commodities trend.
How to Define A Commodities Price Commodities Trend for Position Trading
Using a commodity system that has Three indicators - Moving Average Crossover System, RSI & MACD and using simple rules to define the commodities trend. The trading rules are:
Upwards Commodity Trend
Both MAs Moving Up
RSI above 50
MACD Above Centerline
Downwards 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 timeframe used for trading & a longer chart timeframe 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 commodities trading chart time frame.
Since it is always good to follow the commodity trend when commodity Position Trading, in Multiple 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 Trade Chart Time-frame.
