Learn With ETMarkets: Track commodity market trends with 2 powerful technical analysis tools

economictimes.indiatimes.com:

trading for several reasons, but it's important to note that whether it is better for trading depends on your individual financial goals, risk tolerance, and trading strategies. The commodity market is popular because of its simplicity, and this market has the benefits of diversification, hedging, inflation hedges, liquidity, seasonal patterns, and the physical use of everyone, making it simple to understand.

But when we talk about trading in the commodity market, it becomes a bit difficult because trading is required to identify the price direction or trend identification of the market.

However, with the help of technical and fundamental analysis, one can predict the market to a great extent. Here, we will discuss the methods and how to use them to analyze the commodity market.

Technical analysis: This method gives the price direction of a particular commodity for short-term, mid-term, and long-term trend prospects.

Price charts, indicators, and volume are tools for predicting the market in any time frame. Below are some technical indicators and methods that are suitable for the prediction of the commodity market.

Elliot Wave Analysis: This method works well in a commodity market because the commodity market mostly follows the physically traded commodity and involves mass psychology.

It is helpful to identify the impulsive and corrective wave in the commodity market. This method uses important patterns like triangle, flat, zigzag, irregular, and running correction.