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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.