How to Trade an Upward Commodities Trend

Up commodities trend is when the commodities price of a commodity chart is moving higher and higher. commodities trading prices generally close higher than where they opened.

How to Trade Upward Commodities Trend: Commodities traders use the upward commodity trend direction to open buy commodity trades

Drawing a Commodities Upward Commodities Trend Line

When the commodity market moves up it forms higher highs and higher lows forming a bullish market movement - upward commodities trend. An upward commodity trend line can then be drawn by connecting these higher lows of the commodity price.

To draw this upward commodity trend setup we use support levels. To draw the upward commodity trend line correctly two supports are needed. When commodities price touches the upward line we open buy commodities trades and place stop loss just a few pips below the upward commodity trend line. The upward commodity trend line below shows an example of this upward commodities trend.

Strategy for Trading a Commodities Upward Commodities Trend - Drawing a Commodities Upward Commodities Trend Line

The upward commodity trend setup will show the general direction of the commodity market as bullish therefore commodity traders will only open buy long trades as long as commodities price is within this commodity up trend setup and within the support levels.

These support levels are the levels where if the commodity market retraces then this support points will provide strong supports for the commodities price. This is why many buyers will wait until commodities price retraces downwards and hits these retracements levels on the upward commodity trend line to open buy commodities trades. Trades opened at these levels have a high Risk: Reward Ratio and have little drawdown.

In the above setup the commodity trader would have opened buy commodities trades form the commodity signals generated at the support 1, support 2, support 3 and these buy commodities trades would have been opened with minimum amount of draw-down/retracement.

Upward Commodities Trading Channel

A commodity channel is drawn by drawing a line that is parallel to the upward commodity trend line and then adjusted to touch the top boundary of the commodities price movement. This then forms a channel - upward channel and as long as the commodities price stays between these two channels the bullish market commodity trend movement will continue moving up.

Upward Commodity Trading Channel and Upward Commodities Trend Trading Strategy

Trading The Upwards Commodities Trading Channel

This upwards commodity channel is used by commodities traders to show levels where it best to take profits. Commodities traders will take some profit once the commodities price touches the upper channel and wait for another retracement before opening a buy commodity trade again.