Commodity trading strategies india
The demand and supply curve which makes the movement in the commodity price is always over shadowed by the global activities. Though it is a broad and wide spectrum of study but much time the traders used to neglect its study and analysis. It is my sincere requests do not ever analyze the commodity price based on technical indicator, oscillator or moving average study alone. You must understand the internals of the commodity trading.
Further more commodities are classified as the nature dependent and industry dependent. Going one step further it is classified into two more categories economy dependent and economy independent commodity. All agree cultural tradable commodities are cyclic, nature dependent and economy dependent too. Similarly all industry used metals, energy products are non cyclic, industry dependent and economy dependent.
Some economists also argued that semi cyclic commodity. The demand of a specific commodity is complex tasks to analyze since it depends on many inter continental and global factors. As a trader though you require the sound knowledge in all these but it is quite difficult to master.
Hence the next way out of this problem is "Simplest analytical procedure to understand and apply in commodity trading". The most intelligent method to analyze this commodity price is to use the correlation analysis of domestic currency with the domestic commodity price. The correlation tool is readily available in Microsoft excel to do the job for you. The 2nd intelligent procedure to identify the price trend of the commodity will be using the cycle theory approach of the Elliot, W.
As a commodity trader identify the trend using the cycle theory approach, do the correlation analysis with domestic or any global standard currency. Price action PA reflects the beliefs and actions of all participants human or computer trading in a market during a specified period of time.
Indeed, the economic data and other news events are the catalysts for price movement in a market. The reason is pretty simple: The real trading is not dependent on these above said indicators. The truth is that all indicators are lagging, i. Let us say you are trying to place an order based on the moving average crossover and the moment when you place the trade, the market reverses, and then, the indicator follows.
Have you noticed this situation too often? Though the information given by me is half cooked but I have given the hint for all the necessary parameter which you need to do a perfect commodity analysis. The beta decoupling method also has great success in commodity trading. Must Read Article a. How to use 1SD level to form option strategy? How to do intraday and positional trade using 1SD formula? Covered call option strategy using 1SD formula d. Multiple bull or bear spread using 1SD e.
How to profit from the cross calendar option strategy? How to make profit in straddle option strategy? Intraday GAV Technique h. Day Trading Made Easy i. Wise Stock Investment Tricks j. Currency Trading Techniques l. Commodity Trading Techniques m.
Day trade using gann method b. Day trade using fibonacci method c.