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Commodity Trading Patterns

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Commodity Trading Patterns

Knowing commodity trading patterns allows traders to anticipate the markets in commodity futures. Successful commodities trading is based upon fundamental analysis of the commodity you wish to trade. It is also based upon astute technical analysis of technical analysis charts. Using technical analysis tools such as Candlestick pattern formations allows the trader to predict future market movement and market reversal based upon past and current market action. Commodity and futures training will help the new trader understand and use Candlestick charts and Candlestick charting techniques to make money in a commodity market.

Longer term commodity trading patterns will vary among commodities. For example, gold bullion prices and gold bullion futures will vary with the economy. Corn futures will vary with the weather and crop forecasts. They will also vary by season. The different fundamental analysis of these two different commodities is based upon their being totally different entities. Other precious metals will commonly trade like gold does. Industrial metals such as copper will trade with the rise and fall of the global economy. The commodities markets in wheat, rice, live cattle or other agricultural commodities will trade seasonally and will rise and fall with the ability of the agricultural industry to produce and ship food throughout the world.

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  • 1. Commodity Trading Patterns By www.CandlestickForums.com
  • 2. Knowing commodity trading patternsallows traders to anticipate the markets in commodity futures. www.CandlestickForums.com
  • 3. Successful commodities trading is based upon fundamental analysis of the commodity you wish to trade. www.CandlestickForums.com
  • 4. It is also based upon astute technical analysis of technical analysis charts. www.CandlestickForums.com
  • 5. Using technical analysis tools such asCandlestick pattern formations allows the trader to predict future marketmovement and market reversal basedupon past and current market action. www.CandlestickForums.com
  • 6. Commodity and futures training will help the new trader understand and use Candlestick charts and Candlestickcharting techniques to make money in a commodity market. www.CandlestickForums.com
  • 7. Longer term commodity trading patterns will vary among commodities. www.CandlestickForums.com
  • 8. For example, gold bullion prices and gold bullion futures will vary with the economy. www.CandlestickForums.com
  • 9. Corn futures will vary with the weather and crop forecasts. www.CandlestickForums.com
  • 10. They will also vary by season. www.CandlestickForums.com
  • 11. The different fundamental analysis of these two different commodities isbased upon their being totally different entities. www.CandlestickForums.com
  • 12. Other precious metals will commonly trade like gold does. www.CandlestickForums.com
  • 13. Industrial metals such as copper willtrade with the rise and fall of the global economy. www.CandlestickForums.com
  • 14. The commodities markets in wheat, rice, live cattle or other agricultural commodities will tradeseasonally and will rise and fall with the ability of the agricultural industry to produce and ship food throughout the world. www.CandlestickForums.com
  • 15. Many commodity trading patterns, especially the seasonal agricultural ones, are unique to thosecommodities and are more closely tiedto the fundamentals of the commoditythan to the technical aspects of market reaction. www.CandlestickForums.com
  • 16. However, the bulk of commodity trading patterns are really the same ones seen in trading stock and trading options. www.CandlestickForums.com
  • 17. An example is the head and shoulders pattern or the reverse head and shoulders pattern. www.CandlestickForums.com
  • 18. The head and shoulders pattern signals a market reverse of an equity on an upward trend towards a downward trend. www.CandlestickForums.com
  • 19. The reverse head and shoulders pattern signals a reversal from a downward trend to an upward trend. www.CandlestickForums.com
  • 20. Although a persistent drought in a major agricultural producing area may well drive up prices the various interpretations by many traders willcause market fluctuations superimposed upon an underlying trend. www.CandlestickForums.com
  • 21. Understanding commodity trends, both large and small, will allow traders to profit both from long term markettrends and the market inefficiency that result from important new news and market disruption. www.CandlestickForums.com
  • 22. One factor that affects commoditytrading and commodity trading patternsas opposed to trading in another equity market is hedging. www.CandlestickForums.com
  • 23. The biggest actors in the commoditymarkets are typically the producers and buyers of commodities. www.CandlestickForums.com
  • 24. In fact, commodity markets had theirbeginning as a place for producers andbuyers to come together and agree onfuture prices that protected each from catastrophic loss in case of a large change in market prices. www.CandlestickForums.com
  • 25. Rice traders in ancient Japan usedCandlestick basics to profit from market movements in rice. www.CandlestickForums.com
  • 26. Learning through commodity andfutures training how to do Candlestick chart analysis and use Candlestick trading tactics will profit the trader in both the short and long run. www.CandlestickForums.com
  • 27. It is all about leaning the basics, applyingthem, and maintaining discipline in using commodity trading patterns. www.CandlestickForums.com

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