Trading Reversal Trading Chart Patterns & Continuation Trading Setups

Trading Patterns - Commodities Analysis Trading Chart Patterns Commodity Strategies

trading chart patterns are graphical representations of repeating commodities price action formations that are commonly used in the trading market.

Trading Patterns is one of the studies used in commodity analysis to help traders learn how to identify these repeating Trading Chart Patterns formations.

These Trading Patterns are important in trade because when the commodity market is not moving in a particular direction it is forming a chart pattern. It is important to know these Trading Chart Patterns formations so as to have an idea of what might be the next move in the trading market.

When price movements are drawn there are several Trading Chart Patterns formations that occur naturally and repeat themselves over and over again. These Trading Chart Patterns formations are used by a lot of commodity technical traders to predict the next market move.

Traders often analyze these Trading Chart Patterns formations to gauge supply and demand forces that form the basis for price fluctuations.

These Trading Patterns are classified into Three different categories:

1. Reversal Commodity Trading Patterns

• Double top Trading Setups

• Double bottom Trading Setups

• Head & shoulders Trading Setups

• Reverse head & shoulders Trading Setups

2. Continuation Commodity Trading Setups

• Ascending triangle Trading Setups

• Descending triangle Trading Setups

• Bull flag/pennant Trading Setups

• Bear flag/pennant Trading Setups

3. Bilateral

• Symmetric triangle - Consolidation Trading Setups

• Rectangle - Range Trading Setups

Reversal patterns - Trading Setups - confirm the reversal of the commodity market trend once this reversal chart pattern setup is confirmed. These Reversal Trading Chart Patterns are formed after extended market trend either upward or downward and these reversal patterns signal that the commodity market is ready to reverse.

Continuation patterns Trading Setups - are formations that set up the commodity market for a trend continuation move in direction of the prior trend. These Continuation Trading Chart Patterns are formed when the commodity market is taking a pause before continuing in same direction of the previous trend.

Consolidation patterns Trading Setups - form when the commodity market is taking a break before deciding the next direction to take. When these Consolidation Trading Chart Patterns are formed - the commodity market is trying to decide what direction to trade.

Technical Trading Chart Analysis of Trading Setups

There are 2 different types of commodity trading chart analysis, these two might seem similar but are not: the two are:

• Japanese Candlesticks Patterns - Study of a single candle - Read Japanese Commodity Candlesticks Patterns

• Trading Patterns - Study of a series of commodity candlesticks formations

(This learn commodity tutorial is about the second option above - Trading Chart Patterns)

The different topics for these two types commodity analysis are:

Japanese Candles

• 39. Marubozu Candle Pattern & Doji Candle Pattern

• 40. Spinning Tops Candlesticks Patterns

• 41. Reversal Candles Patterns

• 42. Inverted Hammer Candlestick Pattern & Shooting Star Commodity Candles Patterns

• 43. Piercing Line Commodity Candle Pattern & Dark Cloud Cover Commodity Candles Patterns

• 44. Morning Star Candles & Evening Star Commodity Candles Patterns

Trading Setups Lessons

• 53. Double Tops & Double Bottom Trading Setups

• 54. Continuation Commodity Trading Setups

• 55. Consolidation Trading Patterns

• 56. Head & Shoulders Chart Patterns & Reverse Head & Shoulders Trading Setups

The examples below also illustrate the difference of the formations of these two commodity analysis methods.

Candles Patterns - Study of a single candlestick

Trading Patterns - Study of a series of candle s