What is a Commodities Trend Reversal in Commodities?

Commodities Trend Reversal Meaning and Definition of Commodities Trend Reversal

A commodity trend reversal in commodities trading is when the direction of commodity prices change and start moving in the opposite direction.

To identify this commodity reversal setup traders use the commodity trend reversal trading strategy of commodity trend line break.

A commodity trend reversal means that a commodity up trend reverses and starts moving in a downward direction and for a commodity down trend reversal the commodity down trend reverses and starts moving in an upward direction.

Because a commodity trend reversal is a change in the overall movement of commodities price and not based on the movement of one commodity candlesticks, commodity traders use the commodity trend reversal setup to determine when the commodity trend has been reversed.

Up commodities trading trend Commodities Reversal

When commodities price breaks below the upward commodity trend line (support) the commodity market will then move downwards

Commodities Upward Commodities Trend Line Break - Commodities Trend Reversal Meaning and Definition of Commodities Trend Reversal

This commodity trend reversal trading signal is considered to be complete with the formation of a lower high of the commodities price. This also provides a trading opportunity to sell once the commodity trend line is broken - commodity reversal signal.

Down commodities trading trend Commodities Reversal

When commodities price breaks above the downward line (resistance) the commodities price will then move up

Commodities Downward Commodities Trend Line Break - Commodities Trend Reversal Meaning and Definition of Commodities Trend Reversal

This commodity trend reversal commodity signal is considered to be complete with the formation of a higher low. This commodity reversal trading setup also provides a trading opportunity to open a buy commodity trade once the commodity trend line is broken - commodity trend line reversal commodity signal.

Commodities Trend Line Break

After commodities price has moved in a certain direction for an extended period of time within a commodity trend it reaches a point where it stops moving within the commodities trend. When this happens we say that the commodity trend line has been broken and this is interpreted as a commodity trend reversal commodity signal.

Since the commodity trend line is the point of support or resistance and this point of support or resistance has been broken after a commodity trend line break - then we expect the commodities price to move towards the opposite direction and this is interpreted as a commodity trend reversal commodity signal.