Commodity Market History
Knowing commodity market history allows us to know what the commodities markets will do next. Whether you are buying stock, trading options, selling futures, or trading commodities, knowledge of market history is essential. Trading software has market history built into its programs. Thus commodity traders who are trading online can do simulation trading with real commodity market conditions. More to the point keeping track of commodity market history goes back as far as when Candlestick basics were new. Traders kept track of what happened when certain Candlestick chart formations developed. The use of technical analysis tools such as Candlestick charting allows traders to predict market moves using market history. A good way to learn to use technical analysis based on commodity market history to your advantage is to take commodity and futures training.
The reason traders keep track of commodity market history is that this history repeats itself. Thus patterns, such as Candlestick pattern formations, are predictive of continuing market trends or market reversal. Although a trader may be steeped in fundamental analysis of a commodity he or she still needs to be attuned to technical analysis indicators because these predict the actions of large groups of traders in live market conditions. There really is a déjà vu character to what is essentially trading using commodity market history as a guide. When true market history is packaged and schematized the trader should not forget that those neat little figures on the chart are really representations of many trading sessions in many commodities. They are predictors of how real traders, in groups, will react to market conditions and to each other to create the next state of trading in commodities.