What is the technical analysis in commodity trading

newtrader101

Well-Known Member
#2
Isn't Technical analysis the same for stocks and commodities. But some commodities are much more volatile. Commodities may not hold steady trends like stocks. And because they are highly leveraged, can knock out accounts fast.

Stocks are safer to learn. But expenses (brokerage, taxes etc) are high. Cant hold shorts overnight. Commodities are cheaper to trade, but are more risky.

Goldpetal is a safe instrument to study TA. Low margin, can hold shorts overnight, not too volatile.
Good luck.
 
Last edited:
#3
Heartening to observe youngsters taking an interest in trading.

For brokerage etc., don't let that dis-hearten you, there are many available, SAS (Rs.9/- per trade), zerodha (future/options - Rs.20/- per trade)etc.

The movement of any stock, index or commodity depends on the fuel going into it, so master the study of price(result) and
volume ( effort = fuel), all indicators are derivatives of either price or volume! Select a very few indicators and master them!

Each stock, inicies and commodity exhibits a different behaviour (volatility) so no matter what you trade - you should be in touch
with the behavior of that instrument.

A couple only dances well if " I" am in touch with the partner - same with trading - let the market tell me what to do - NOT SOME
INDICATOR!
Most important - understand yourself first - for trading you will have to unlearn most of what you have been taught by society!

Successful learning , happy trading - understand yourself and the universe will unfold in its full glory - mere words - experience the
journey! Make some space inside for the universe to enter !
 
#5
While commodity trading, you must incorporate technical analysis in your trading plan. The analysis begins with looking at the price charts of the particular commodity, easily available online (tradingview is a good one). Understand the basics related to patterns and indicators gradually. Be sure that you select few indicators that help you to confirm the trend, which is important to analyze the trade properly.
 
#6
Technical analysis in commodity trading involves evaluating commodities by analyzing statistical trends derived from trading activity, such as price movement and volume. Traders use charts and technical indicators, like moving averages, Relative Strength Index (RSI), and Bollinger Bands, to identify patterns and forecast future price movements. The core idea is that historical trading data can provide insights into potential future price actions, enabling traders to make informed decisions about buying and selling commodities. Technical analysis does not consider the commodity's intrinsic value but relies solely on market data and trading signals.
 
#8
Want to explore about stock and commodity market
The stock market is where shares of publicly traded companies are bought and sold. Investors can purchase stocks to become partial owners of these companies and potentially profit from their growth and performance.
The commodity market is where raw materials or primary agricultural products are traded. Commodities include metals (such as gold, silver, and copper), energy (such as crude oil and natural gas), agricultural products (such as wheat, corn, and soybeans), and more.
 

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