http://www.candlestickforums.com/ Commodity Price Patterns Although commodity prices may or may not repeat themselves commodity price patterns do. In fact, it is because history repeats itself that technical analysis tools work to predict the next move in a commodity price. Certainly commodities traders have long had an intuitive sense about the commodities markets. However, it was not until Japanese rice traders developed Candlestick charting techniques in the days of the Samurai more than three centuries ago that there was an organized and teachable system for commodity trading. Today a beginning commodity trader can take commodity and futures training to learn about Candlestick trading tactics as well as modern technical analysis terms for the same Candlestick pattern formations that guided traders centuries ago. The basic price of a commodity comes from the law of supply and demand. Inflation will make commodity prices higher in dollars even when a commodity such as gold will still buy the same amount of food or a house for the same weight that it did a century ago. Predicting changes in the basic price of a commodity is a matter of fundamental analysis. Following commodity price patterns is a matter of technical commodity analysis.

1. Commodity Price Patterns
By
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2. Although commodity prices may or may
not repeat themselves commodity price
patterns do.
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3. In fact, it is because history repeats itself
that technical analysis tools work to
predict the next move in a commodity
price.
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4. Certainly commodities traders have long
had an intuitive sense about the
commodities markets.
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5. However, it was not until Japanese rice
traders developed Candlestick charting
techniques in the days of the Samurai
www.CandlestickForums.com

6. more than three centuries ago that
there was an organized and teachable
system for commodity trading.
www.CandlestickForums.com

7. Today a beginning commodity trader can
take commodity and futures training to
learn about Candlestick trading tactics as
www.CandlestickForums.com

8. well as modern technical analysis terms
for the same Candlestick pattern
formations that guided traders centuries
ago.
www.CandlestickForums.com

9. The basic price of a commodity comes
from the law of supply and demand.
Inflation will make commodity prices
higher in dollars even
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10. when a commodity such as gold will still
buy the same amount of food or a house
for the same weight that it did a century
ago.
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11. Predicting changes in the basic price of a
commodity is a matter of fundamental
analysis.
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12. Following commodity price patterns is a
matter of technical commodity analysis.
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13. Commodities are prone to cyclical price
changes.
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14. Copper futures, for example, will go
down in price during an economic
recession and up when traders see a
recovery on the way.
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15. Corn futures may vary throughout the
year as concerns about the next harvest
prompt hedging by growers and buyers.
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16. These commodity price patterns are
longer term, typically yearly.
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17. Commodity price patterns that emerge
from the actions of thousands of traders
develop over months, weeks, days, and
even hours or minutes.
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18. Trend trading of commodities is possible
when the market comes to believe that
the future price of a commodity and its
commodity futures price will gradually
go up or down.
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19. Traders will profit from buy and selling
or short selling and buying commodity
futures when successfully trading a
trend. Doing this successfully requires
that the trader follow the market and
market news attentively,
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20. studies commodity price patterns, and
compares current price patterns to
technical analysis charts, whether they
are of the modern variety or modern
versions of Candlestick charts.
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21. Just as the use of technical analysis to
verify that a trend is likely to continue
the trader will use technical methods to
anticipate a market reversal.
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22. Although it is the basics of commodity
production and the market for the
commodity that ultimately decides price
it is the combined actions of many
traders that generate commodity price
patterns.
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23. Being able to “see the forest for the
trees” is an old expression for
recognizing trends or the big picture.
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24. This is what Candlestick basics have
done for centuries. Long before today’s
statistical analysis methods were even
dreamed of traders dutifully recorded
commodity prices and came to recognize
patterns that predicted the market’s
next move.
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25. The old saying that using Candlesticks
allows the trader to let the market tell
him what the market will do is as true
today as it was in the days of the
Samurai.
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