Trading Commodities Find a Commodities Trend

How to Identify Commodities Trends

To identify a commodity traders need to use commodity tools that help in determining and identifying a commodities trend.

The most popular commodity tool to identify a commodity trend is:

Commodities Trend Lines

A commodity trend line depicts the points of support and resistance for the commodity price, depending on the direction of the commodities market.

For an upward moving commodity market commodity trend the commodity trend line will shows the points of support

For a downward moving commodity market commodity trend the commodity trend will show the areas of resistance

These commodity trend lines are mainly used by many commodity trader to determine these resistance and support levels.

Commodities Trend line is a straight line that connects two or more commodities price points on a commodity chart and then extends into the future to act as a level of support or resistance. There are two different types of commodity trend: upward commodity trend and downward trend. Commodities Trend line is an aspect of commodities trading technical analysis that uses line studies to try and predict where the next commodities price move will head to. A commodity trader should know how to draw and interpret the trading signals generated by this commodity trend line tool.

The basis of this commodity trend line analysis is based upon the idea that markets move in trends. commodities trading trend lines are used to show three things.

• The general commodities price direction - up or down.
• The strength of the current move - and
• Where future support and resistance will be likely located

If commodity trend lines forms in a certain direction then market usually moves in that direction for a period of time until a time when the commodity trend line is broken.

Plotting these commodity trend lines on a commodity chart shows the general commodity trend of the commodity market which can either be upward or downward.

Below is an example of how to draw these commodity trend line on commodities charts

Commodities Trend Line Tutorial:How to Draw and Trade Upward Move Using Commodities Trend Lines

Commodities Trend Line Tutorial: How to Draw and Trade Upward Move Using Commodities Trend Lines

Commodities Trend Line Tutorial: How to Draw and Trade Downward Move using Commodities Trend Lines

Commodities Trend Line Tutorial: How to Draw and Trade Downward Move using Commodities Trend Lines