What is Commodities Trend in Commodities?
A commodity trend is the tendency of commodity prices to move in one particular direction for a certain period of time.
commodities trading prices generally move in trends, the commodity trend direction can either be upwards or downwards.
Commodities Traders use commodity tools such as commodity trend lines to identify commodity trends.
Commodities Trend lines help to define entry and exit points for trades that are open by commodities traders.
The commodity trend line define the commodity market commodity trend and as long as commodity prices continue to move within the commodity trend line the commodity traders will keep their trade open. Commodities traders will only close their open commodity trade once the commodity prices stop moving within the commodity trend lines.
The two types of commodity trends are:
Upward Commodities Trend - Drawn using an upward commodity trend line
Downward Commodities Trend - Drawn using a downward commodity trend line
Upward Commodities Trend
Tutorial:How to Draw and Trade Upward Commodities Trend
Upward Commodities Trend - Drawn using an upward commodity trend line
Downward Commodities Trend
Tutorial: How to Draw and Trade Downward Commodities Trend
Downward Commodities Trend - Drawn using a downward commodity trend line
The MT4 commodities trading platform provides charting tools for drawing trends on commodities charts. To draw commodities trend on commodities charts traders can use the commodity trend line drawing tool provided on the MetaTrader 4 software that is shown below.
Definition and Meaning of a Commodities Trend and How to Trade a Commodities Trend
To draw a commodity trend line on the MT4 commodities trading platform and select point A where you want to start drawing and then point B where you want the it to touch. You can also right click on the trend-line and on the properties option select the option to extend its ray by ticking the "ray check box", if you do not want to extend it, then uncheck this option in your commodities trading platform.
The commodity trend is your friend. Is a popular saying among commodity traders because you should never trade against it. This is the most reliable commodity method to trade Commodities because once commodity prices start to move in one direction they can move in that particular direction for quite some time in what is known as a trend.
Principles of How to Draw and Define Commodities Trend
Use commodity candlestick charts
- The points used to draw the commodity trend are along the lows of the commodities price bars in a rising market. An upward bullish commodity trend move is defined by higher highs and higher lows.
- The points used to draw are along the highs of the commodities price bars in a falling market. A downward bearish commodity trend move is defined by lower highs and lower lows.
- The points used to draw the commodity trend lines are extremes points - the high or the low commodities price. These commodities price extremes are important because a close beyond the extreme tells commodity traders that the commodity trend of commodity might be changing. This is an entry or an exit commodity signal.
- The more often a commodity trend is touched by commodities price but not broken, the more powerful the commodity trend signal.
