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Commodity Price Trends
The ability to predict commodity price trends has made a number of traders rich. There are two ways to predict commodity price trends; they are by fundamental and technical analysis of the commodities involved. Analysis and prediction of longer term commodity trends requires a basic knowledge of each commodity traded and attention to the details that affect commodity prices. It comes down to long term trading supply and demand. Technical analysis for short term trading of commodities relies upon the fact that commodity price patterns repeat themselves. It is the nature of any equity market to come to a consensus with time. However, in doing so, the path is seldom straight. Commodities markets fluctuate up and down in establishing commodity price trends. Commodity prices also fluctuate in predictable ways before a market reversal. Learning to trade both long term and short term factors is a key to commodity trading success. Starting with Commodity and Futures Training the beginning trader will establish the basis for years of successful commodities trading.
It has been hundreds of years since rice traders in Japan as well as tulip bulb traders in Holland started making sense of commodity price trends. Traders kept records of price patterns and did the first types of trend analysis. They were able to understand that before entering into a price trend a commodity would go through a number of price patterns that were repetitive and highly predictive. Candlestick analysis of Candlestick pattern formations led to successful Candlestick trading tactics that made traders rich in the days of the Samurai. These technical analysis tools are still used and still effective today in predicting commodity price trends as well as breakouts from trends. Traders need to understand market fundamentals in order to understand the potential range in which a commodity will trade and its likely eventual price. The trader who is trading oil futures , corn futures, gold futures, or virtually any futures will need to understand a different set of fundamentals but the mechanics of the commodities markets and how traders trade are the same in each of these arenas. Learning the basics of technical trading, Candlestick basics, will allow the trader to stay a step ahead by letting the market say what the market will do.
2. The ability to predict commodity price
trends has made a number of traders
rich.
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3. There are two ways to predict
commodity price trends; they are by
fundamental and technical analysis of
the commodities involved.
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4. Analysis and prediction of longer term
commodity trends requires a basic
knowledge of each commodity traded
and attention to the details that affect
commodity prices.
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5. It comes down to long term trading
supply and demand.
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6. Technical analysis for short term trading
of commodities relies upon the fact that
commodity price patterns repeat
themselves.
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7. It is the nature of any equity market to
come to a consensus with time.
www.CandlestickForums.com
8. However, in doing so, the path is seldom
straight.
www.CandlestickForums.com
10. Commodity prices also fluctuate in
predictable ways before a market
reversal.
www.CandlestickForums.com
11. Learning to trade both long term and
short term factors is a key to commodity
trading success.
www.CandlestickForums.com
12. Starting with Commodity and Futures
Training the beginning trader will
establish the basis for years of successful
commodities trading.
www.CandlestickForums.com
13. It has been hundreds of years since rice
traders in Japan as well as tulip bulb
traders in Holland started making sense
of commodity price trends.
www.CandlestickForums.com
14. Traders kept records of price patterns
and did the first types of trend analysis.
www.CandlestickForums.com
15. They were able to understand that
before entering into a price trend a
commodity would go through a number
of price patterns that were repetitive
and highly predictive.
www.CandlestickForums.com
16. Candlestick analysis of Candlestick
pattern formations led to successful
Candlestick trading tactics that made
traders rich in the days of the Samurai.
www.CandlestickForums.com
17. These technical analysis tools are still
used and still effective today in
predicting commodity price trends as
well as breakouts from trends.
www.CandlestickForums.com
18. Traders need to understand market
fundamentals in order to understand the
potential range in which a commodity
will trade and its likely eventual price.
www.CandlestickForums.com
19. The trader who is trading oil futures ,
corn futures, gold futures, or virtually
any futures will need to understand a
different set of fundamentals but the
mechanics of the commodities markets
and how traders trade are the same in
each of these arenas.
www.CandlestickForums.com
20. Learning the basics of technical trading,
Candlestick basics, will allow the trader
to stay a step ahead by letting the
market say what the market will do.
www.CandlestickForums.com
21. During commodity price trends the
prices of commodities or commodities
futures will not move up or down in a
straight line.
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22. Those mostly interested in long term
investing in a given commodity will
typically buy or sells futures contracts
based upon their analysis of the price
trend.
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23. They will wait until the trend plays itself
out or the contract is ready to expire
before exiting the trader.
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24. A day trader with a shorter term focus
will typically buy and sell futures
contracts during the course of the
trends, using trend analysis to guide
their purchases and sales.
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25. By following commodity price trends
traders can profit from both their
fundamental analysis of commodity
supply and demand aspects and from
their technical commodity analysis of
shorter term market moves within the
prevalent trend.
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