What is Commodities Trend in Commodities?
A commodity trend is the tendency of commodities prices to move in one specific direction for a certain period of time.
Commodities trading prices generally move in trends, the commodity trend direction can either be upwards or downward.
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 commodities trading prices continue to move within the commodity trend line the traders will keep their trade open. Commodities traders will only close their open commodity trade once the commodities trading 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 downwards commodity trend line
Upward Commodity Trend
Guide:How to Draw and Trade Upwards Commodities Trend
Upwards Commodities Trend - Drawn using an upward commodity trend-line
Downwards Commodities Trend
Course: How to Draw & Trade Downwards Commodities Trend
Downwards Commodities Trend - Drawn using a downwards commodity trend-line
The MT4 commodities software provides charting tools for drawing trends on commodities charts. To draw commodities trend on commodities charts traders can use the commodity trendline plotting tool provided on MT4 software that is shown below.
Definition & Definition of a Commodities Trend and How to Trade a Commodities Trend
To draw a commodity trend line in MetaTrader 4 platform & select point A where you want to begin drawing & then point B where you want the it to touch. You can also right click in trend-line and on the properties option select the option to extend the ray by ticking the "ray check box", if you don't 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 commodities prices start to move in one direction they can move in that direction for quite some time in what is known as a trend.
Principles of How to Draw & Define Commodity Trend
Use commodities candlestick charts
- The points used to draw the commodity trend are along the lows of the commodities price bars in a rising market. An upwards bullish commodity trend move is defined by higher highs & higher lows.
- The points used to plot are along the highs of the commodities trading price bars in a falling downwards market. A downward bearish commodity trend move is defined by lower highs & lower lows.
- The points used to draw the commodity trend lines are extremes points - the high or the low commodities trading price. These commodities trading 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 commodities trade signal.
- The more often a commodity trend is touched by commodities trading price but it's not broken, then the more powerful the commodity trend signal.
