Commodity Trading Price Action 1-2-3 Commodity Price Action Trading Strategy in Commodities
Commodities Price action trading is the use of only commodities price charts to trade Commodities, without the use of technical chart technical indicators. When trading with this commodities price action commodity strategy, candlestick commodity charts are used. This strategy uses lines and pre-determined patterns such as the 1-2-3 commodities price action pattern commodity strategy explained below.
Traders use this commodities price action trading strategy because this analysis is very objective & allows the one to analyze the commodities price moves based on what they see on commodities charts market movement analysis alone.
This commodities price action strategy is used by many commodity traders: even those that use technical indicators also integrate some form of commodities price action in their commodities trading strategy.
The best use of this commodities price action strategy is achieved when the commodities price action signals generated are combined with line studies so as to provide extra confirmation. These line studies include commodity trend lines, Fibonacci retracement, support and resistance areas.
Commodity Trading Price Action 1-2-3 Break-out
Commodities Price action strategy uses three commodity chart points to determine the break out direction of commodities price. The 1-2-3 commodities price action trading strategy uses a peak & a trough, these chart points forms point 1 and point 2, if market moves above the peak the commodities price action trading signal is long, if it moves below the trough the commodities price action signal is to short. The break out of point 1 or point 2 forms the third chart point.
Commodity Trading Price Action 1-2-3 Commodity Trading Price Action Trading Strategy in Commodities Trading - Commodity Trading Price Action Trading
Series of breakouts on Commodities Trading Chart
Commodity Trading Price Action 1-2-3 Commodity Price Action Trading Strategy in Commodities Trading - Commodity Trading Price Action Trading
Commodity traders use commodities price action to try and predict where a commodity trend direction might go. The commodity market is either trending or ranging.
A trending market moves in a particular direction while a ranging market moves sideways, normally after getting to a support or resistance zone.
Observing the behavior of commodities price action provides this data of whether the commodity market is trending or ranging or reversing its direction.
As with any other Commodities strategy this commodities price action strategy should also be combined with other confirming indicators to avoid whipsaws. The 1-2-3 pattern can give good signals in a trending market but will give whipsaws when the commodity market is ranging, it is best to determine if the commodity market is trending or not before you start using this strategy.
