How to Read Commodities Chart Patterns & What is Commodity Trading Charts Analysis Patterns
Commodity Trading Charts Analysis Strategies Tutorial
There are 3 types of charts used in Commodity Trading: Line Chart, Bar Chart and Candlesticks Chart - how to read commodity charts beginners Tutorial.
How to Read Commodity Trading Chart Analysis
Line Charts - commodity line charts draw a continuous line connecting closing commodity prices of commodity.
Commodity Trading Line Charts - How to Read Commodity Charts Beginner Traders PDF
Bar Chart - commodity trading bar charts are displayed as sequence of OHCL bars. O-H-C-L represents OPEN HIGH LOW & CLOSE. The Opening commodity price is displayed as a horizontal dash on the left & closing commodity price as a horizontal dash on the right.
Commodity Trading Bar Charts- How to Read Commodity Charts Beginner Traders PDF
The main disadvantage of commodity trading bar chart is that it is not visually appealing, therefore most traders don't use them.
Candlesticks Charts - these commodity candlesticks charts use the same price data as commodity trading bar charts (open, high, low, & close). However, they are displayed in a much more visually identifiable way which looks like a candlestick with wicks on both its ends.
How to Interpret Candles Charts
Rectangle part of the commodity candlestick is called the body.
The high & low of the commodity candlestick are described as shadows & plotted as poking lines.
How to Read Commodity Charts Beginner Traders PDF
The color of the commodity candlestick is either blue or red:
- (Blue or Green Color Candlesticks) - Commodity Trading Prices moved up
- (Red Color Candles) - Commodity Trading Prices moved down
Most commodity trading platforms like the MT4 Commodities Trading Software, use colors to mark the direction of the commodity price. Commodity Trading Candle Sticks colors used are blue or green: when price moves up, color of commodity candle is blue: when price moves downward, color of commodity candlestick is red.
How to Read Commodity Trading Charts Beginner Traders PDF
When Commodity Trading candle sticks charts are used it's very easy to see if the commodity price moved up or down as opposed to when bar charts are used.
The Japanese candles charts trading techniques also have very many candles formations which are used to trade the Commodity Trading Markets. These commodities chart patterns have different technical analysis explanation & the most common are:
How to Read Commodities Trading Chart Patterns Beginners PDF
The above commodities candlesticks patterns is what makes the Japanese candlesticks chart patterns popular among commodity traders & it is why this type of technical commodity chart analysis are the most widely used when it comes to analyzing the Commodity market. Analysis for these commodity charts pattern formations in commodity trading is same as that one used in stocks trading.
