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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.
2. Knowing commodity trading patterns
allows traders to anticipate the markets
in commodity futures.
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3. Successful commodities trading is based
upon fundamental analysis of the
commodity you wish to trade.
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4. It is also based upon astute technical
analysis of technical analysis charts.
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5. 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.
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6. 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.
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7. Longer term commodity trading patterns
will vary among commodities.
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8. For example, gold bullion prices and gold
bullion futures will vary with the
economy.
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9. Corn futures will vary with the weather
and crop forecasts.
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10. They will also vary by season.
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11. The different fundamental analysis of
these two different commodities is
based upon their being totally different
entities.
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13. Industrial metals such as copper will
trade with the rise and fall of the global
economy.
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14. 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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15. Many commodity trading
patterns, especially the seasonal
agricultural ones, are unique to those
commodities and are more closely tied
to the fundamentals of the commodity
than to the technical aspects of market
reaction.
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16. However, the bulk of commodity trading
patterns are really the same ones seen
in trading stock and trading options.
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17. An example is the head and shoulders
pattern or the reverse head and
shoulders pattern.
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18. The head and shoulders pattern signals a
market reverse of an equity on an
upward trend towards a downward
trend.
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19. The reverse head and shoulders pattern
signals a reversal from a downward
trend to an upward trend.
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20. Although a persistent drought in a major
agricultural producing area may well
drive up prices the various
interpretations by many traders will
cause market fluctuations superimposed
upon an underlying trend.
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21. Understanding commodity trends, both
large and small, will allow traders to
profit both from long term market
trends and the market inefficiency that
result from important new news and
market disruption.
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22. One factor that affects commodity
trading and commodity trading patterns
as opposed to trading in another equity
market is hedging.
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23. The biggest actors in the commodity
markets are typically the producers and
buyers of commodities.
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24. In fact, commodity markets had their
beginning as a place for producers and
buyers to come together and agree on
future prices that protected each from
catastrophic loss in case of a large
change in market prices.
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25. Rice traders in ancient Japan used
Candlestick basics to profit from market
movements in rice.
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26. Learning through commodity and
futures training how to do Candlestick
chart analysis and use Candlestick
trading tactics will profit the trader in
both the short and long run.
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27. It is all about leaning the basics, applying
them, and maintaining discipline in using
commodity trading patterns.
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