How to Commodities Trade a Consolidation Pattern

To trade consolidation commodity chart patterns in commodity traders need to learn about the technical analysis of consolidation commodities trading pattern.

Consolidation Commodity Trading Chart Patterns

Consolidation commodities trading chart patterns are commodity chart patterns with converging commodity trend lines that form a commodities price consolidation period.

The technical buy point from a consolidation commodity chart pattern is the upside breakout of commodities price

While a downside breakout of commodities price is a technical sell commodities trading signal.

Ideally, a market breaks out from a symmetrical triangle prior to reaching the apex of the triangle.

Commodities Trend-lines can be drawn connecting the lows & highs of the consolidation phase, the commodity trend lines formed are symmetric and converge to form an apex.

A commodities price breakout should occur somewhere between 60-80% into the consolidation commodity chart pattern - triangle commodity pattern. An early or late breakout is more prone to failure, and therefore less reliable.

After a commodities price breakout the apex forms support and resistance levels for the commodities price. Commodities Price that has broken out of the apex should not retrace past the apex. The apex of the consolidation commodity pattern is used as a stop loss setting area for the open Commodities trades.

When these consolidation commodity chart patterns form we say that the Commodities market is taking a break before deciding the next direction to take.

These consolidation commodity patterns form when there is a tug of war between the buyers and the sellers & the commodities market can not decide which way to move.

Commodities Trade a Consolidation Pattern? - Technical Analysis Consolidation Commodities Trading Chart Pattern in Commodities?

However, this consolidation commodity chart pattern cannot go on forever & just like in a tug of war one side eventually wins, looking at the commodities chart example illustrated & explained below see how the commodity consolidation commodity pattern eventually had a commodities price breakout & moved in one direction.

Commodity Trading Consolidation Commodities Trading Chart Pattern Commodity Trading Price Breakout Downwards - Sell Trading Signal

Commodity Trading Consolidation Commodities Trading Chart Pattern Commodity Trading Price Breakout Upwards