“An investment in knowledge pays the best interest” - Benjamin Franklin
The understanding part of Technical Analysis. is simple and also the practical applicability can be done faster. the feeling of the market is taken into account which is subjective in nature. Let’s look into the benefits that contribute towards trading strategies.
- It is the inevitable truth that the fundamental news plays a huge role in supply and demand, influencing the commodity price. it has an enormous impact on investment decisions because it keeps the investors informed on the happenings. the group market psychology is identified using these patterns. It provides a large view on price forecasting.
- The movement or direction of the commodity market trend is identified and monitored using the market analysis. when we learned about Market Trends, the 3 types of trends discussed were Uptrend, a downtrend or a sideways trend. These trend directions are used for making decisions when we invest and trade in commodity markets.
- This strategy is useful for short trading. The long-term entry and exit point are supported by elementaryanalysis. It can be noticed that, when the basic news is released on the market, the commodity price has already modified. in order to take a decision in the entry and exit point, some traders use a blending of trend indicators, structures, volume and also moving averages.
The above chart indicates the “Entry and Exit” for the commodity product crude oil. As you can see in the graph, the trade goods breaks above resistance. The Target level is calculated using “Trend line resistance”
