Analyze Support and Resistance Zones using Trend Lines
How to Analyze Support & Resistance using Commodity Trading Trend Lines Strategy
Support & resistance levels on commodities charts may sometimes form in a diagonal way especially when the prices are moving in a upwards trend or commodity downwards trend.
In a commodity upward trend the support levels for commodity trading price will form in a diagonal way that is sloping upwards - & from this upward sloping diagonal support levels commodities traders can then draw commodity upwards trend-lines and use these commodity upward trendlines to find the support levels.
In a commodity downward trend the resistance levels for commodity trading price will form in a diagonal way that is sloping downwards - & from this downward sloping diagonal resistance levels commodities traders can then draw commodity downward trend lines & use these commodity downward trendlines to find the resistance levels.
How to Analyze Support Zones Using Upwards Commodity Trend Lines
An commodity upwards trend line is drawn below the upward trend pattern formed by consecutive higher low, the upwards trend-line must connect at-least two commodity trading price lows, with the most recent commodity trading price low being higher.
Since commodity trading price moves upward in a zigzag manner commodity traders normally draw a commodity upwards trend-line which shows the general upwards movement of the commodity prices - In commodity technical analysis we can define this upwards trend-line is drawn on a commodity chart showing the support regions ( upward commodity trading price direction).
How to Analyze Support Zones Using Upward Commodity Trend-Lines
To draw this upward trend we use support levels & to draw commodity upward trend correctly 2 support levels are needed. When commodity trading price touches this upwards trend line, then commodity traders will open buy commodities trades & place commodity stop-loss orders just a few points below sloping support levels - shown by the upward trendline:
How to Analyze Support Zones Using Upward Commodity Trend-Lines
How to Analyze Resistance Levels Using Downward Commodity Trend Lines
A commodity downward trend-line is plotted above the downwards trend pattern formed by consecutive lower highs, the downward trend-line must connect at-least two commodity trading price highs, with the most recent commodity trading price high being lower.
Since commodity trading price moves downward in a zigzag manner commodity traders normally draw a commodity downwards trend-line which shows the general downwards movement of the commodity prices - In commodity technical analysis we can define this downward trend-line is drawn on a commodity chart showing the resistance regions ( downward commodity trading price direction).
How to Interpret Resistance Levels Using Downwards Commodity Trend-Lines
To draw this downward trend we use resistance levels & to draw commodity downwards trend correctly 2 resistance areas are needed. When commodity trading price touches this downward trend line, then commodity traders will open sell commodities trades & place commodity stop-loss orders just a few points above the sloping resistance levels - shown by the downward trendline:
How to Interpret Resistance Levels Using Downwards Commodity Trend-Lines
How to Interpret Support & Resistance using Commodity Trading Trend Lines Strategy
