20 Pips a Day Compounding Commodity Trading Strategies
The 10 or 20 pips commodity price range moving average indicator strategy is used with the 15 minutes & 1 H Commodity Trading Charts. On this commodity chart timeframes we use the 100 and 200 simple moving average trading indicator.
Both the 1 Hour & 15 minute trading chart timeframes will use the 100 & 200 simple moving average indicator (SMA Trading Indicator) to determine the direction of the Commodity Trading trend.
The 1 Hour commodity chart time-frame checks the long term direction of the Commodity Trading trend, upwards trend or downward trend, depending on the direction of the moving averages. All trades taken should be in this direction.
We then use the 15 minute commodity price commodity chart to find the optimal point to enter trades. Trades are opened only when the price is within 10 or 20 pips range of the 200 simple moving average indicator, if commodity trading price is not within this pip range trades are not opened.
Commodities Trading Uptrend/Bullish Market
To generate Commodity Trading buy trading signals using the 10 or 20 pips moving average technical indicator commodity trading strategy, we shall use the 1 hour and 15 min chart time frame.
On the 1H commodity chart time frame the commodity price pair should be above both the 100 and 200 simple moving average indicator. We then move to a lower commodity chart time frame, the 15 min chart time frame to generate a commodity trade signal.
On 15 min trading chart time frame, when price reaches 10 or 20 pips range above the 200 simple moving average indicator, we open a buy commodity trade and place a stop-loss 20 pips below 200 simple moving average indicator. Stop loss can be adjusted to the amount of Pips that are suitable for your style method but to avoid being stopped out by normal Commodity Trading volatility its best to use 20 pips stoploss.
A buy commodity trade can also be opened when price touches 100 Simple moving average indicator, provided it is not set too far from the 200 Period Simple Moving Average Technical Indicator. Normally the 100 simple moving average trading indicator will be within the 10 or 20 pips range of the 200 simple moving average trading indicator.
100 & 200 Simple Moving Average Commodity Technical Indicator Buy Trading Signal
Commodity Trading Downtrend/Bearish Market
To generate Commodity Trading sell trading signals using the 10 or 20 pips moving average technical indicator commodity trading strategy, we shall also use the 1hour and 15 min chart time frame.
On the 1H commodity chart time frame, the commodity price should be below both the 100 and 200 simple moving average indicator. We then move to the 15 min chart time frame to generate a commodity trading Signal.
On 15 minute chart, when price reaches the 10 or 20 pips range below the 200 simple moving average technical indicator, we open a sell commodity trade and place a stop-loss 20 pips above the 200 simple moving average technical indicator.
100 and 200 simple moving average indicator Sell Trading Signal
With this commodity strategy method commodity price will generally bounce of these areas because many Commodity traders watch these levels, & open similar trades at around the same point.
These areas act as short term resistance or support areas within the commodity price commodity charts.
Commodities Trading Profit Taking level For This Strategy
With this commodity trading strategy the commodity price will bounce & make a move in direction of the original Commodity Trading trend. This move will range from 50 - 80 pips.
The best profit taking level would therefore be considered to be 50 - 60 pips from the 200 simple moving average technical indicator.
