Trading Commodity 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:
Commodity Trendlines
A commodity trend line depicts the points of support & resistance for the commodities trading price, depending on the direction of the market.
For an upward moving commodity market commodity trend the trendline will shows the points of support
For a downwards moving commodity market commodity trend the trend will show the areas of resistance
These commodity trend lines are mainly used by many commodity trader to figure out these resistance & support levels.
Commodities Trend-line is a straight line that connects 2 or more commodities trading 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 trading price move will head to. A 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 - upward or downward.
- The strength of the current move - and
- Where future support & 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 trendlines on a commodity chart shows the general commodity trend of the commodity market which can either be upwards or downwards.
Below is example of how to draw these commodity trend line on commodities charts
Commodities Trend Line Tutorial:How to Draw & Trade Upward Move Using Commodities Trend Lines
Commodities Trendline Guide: How to Draw & Trade Upwards Move Using Commodities Trend Lines
Commodities Trendline Tutorial: How to Draw & Trade Downward Move using Commodities Trend Lines
Commodities Trend-Line Guide: How to Draw & Trade Downwards Move using Commodities Trend Lines
