What is Day Trading? Best Day trading chart patterns for commodity market.
Day trading is based on a short term goal where buyer’s and seller’s does participate in commodity market with an aim of short term profit target. Short term trading can be done in all types of financial markets, and most of trader’s does work upon the price action techniques to understand the price movements and fluctuations, along with it day trading is not that much easier at all so we would suggest new trader’s to stay away from the day trading. A lot of skill and experience is highly recommended before entering in day trading market.
The main problem is the emotion here, in day trading targets emotion can catch you so many times which can lead to huge loss in trading. Furthermore in long term trading less emotions does take places so better to go with long term trading learning at first. But if you an old & experienced trader then why not you can test your trading skill and abilities in day trading as well.
Keep in mind that the main goal is to enter and exit on the right time, it does not matter in which financial market you are getting involved the main agenda should be to checkout for a good entry and exit. Some of the good recommendations are sell high, buy low, follow the trend, etc. Actually there are so many differ’s trading strategies those can help a trader to find out a good trading spot for a buy and sell.
Furthermore we will suggest you to understand the concept of buyers and sellers, you have to understand this very deeply that how big players move the market up and down, how they perform and what kind of market pattern they create before a bullish and bearish run, look this is not so much simple to understand due to market uncertainty but still we believe that a good knowledge of big players foot prints would make a you a consistent profitable trader in commodity market.
Day Trading chart patterns for commodity market trading:
Commercial Trader’s Footprints:
Trading by following the big player footprints’ would be really a great achievement for a trader in any financial market, commercial trader’s are everywhere as well as in commodity too. You have to make sure that a great skill required to understand the big players psychology and we believe that candlesticks & market chart patterns does play an very important role to check about the commercial trader’s footprints lets take a look on an example which will help you you to understand clearly about the concern.
As shown above the image whenever we have these kinds of big candlesticks on chart that time you have to keep in mind that these candlesticks are normal at all, they are the real footprints of the big players, Though big players footprints does work well in long term time frames but still in short term time frames whenever this kind of picture is appearing in front of you that you can take the advantage of this upside wave, most of time these patterns push the market up, and the other confirmation you can use the EMA 200 on chart, for short term trading this can be a very powerful trading strategy for traders.
Along with you have to keep Higher High and Higher Low’s in mind so that later you can cut your trading position with some amount of profit or even you can do hedge in your trading positions depend upon the market conditions but if once we that Lower high and Lower Low’s are appearing on chart that mean we have to close our trades. Small trader’s don’t has that potential to make big green candles during an uptrend, and those are the big players who create those big massive green candlesticks.
Filtering the trading signals would be essential during use any type of trading strategy, not trading patterns are fixed and condition may vary time to time. If once you have a confirmation that market price is stabling above of 200 Day Moving average then it would be a good trade to hold the trade for long run, here in this type of study and trading we are fully concentrating on the big players psychology, that’s why following the trend would be a great essential element to become an successful trader in day trading.
So that was the picture where big players concentrate on short powerful uptrend and after that once again you will able to see a downfall in market, Look following trend trading is a very good thing and if you have a good ability to follow the market every time then making consistent profits will not be that much difficult for you from the day trading. Lets us take another example of commercial trader’s footprint’s, now we have to check that how they perform when they have a focus on big long run market trend, during that the market price will sustain for a long run on the 200 EMA.
As shown above in the picture ,the big green candlesticks series are showing the entrance of big market players that’s what we are talking about above in our first paragraph. This a long bull run picture, and see how market big players participate. They are always there with couple of good signs and a large series of green candlesticks are a few of them. After this confirmation you have to use the fibonacci, moving average indicator, etc to confirm it whether its a long term uptrend sign or we gonna see a downfall soon. You can clearly see in chart that after the confirmation is getting a good support of 200 EMA which can also be a good sign to filter our trading signals during trading.
On the other hand during the downtrend you have to concentrate on a large series of big red candlesticks, those give an indication of market sell. during an uptrend you will able to see a Higher High and Higher Low Sequence but during an downtrend you have to concentrate on Lower High and Lower Low sequence. This is one of the best approach to check out the market trend bullish and bearish direction.
Whenever big players start’s to put their money in for a long run then its normal that every time we see a 50% to 60% pullback market will again join the previous market trend and that is how the fibonacci theory also does work. But its essential to know that in current market trend what direction big players are holding for now, because next move will take place totally according to that calculation.
So that was all about the big players entrance in commodity market or in other financial markets. We hope that you enjoyed the article, furthermore if you have any doubts or query just drop down your comments below or you an write us directly from the contact us box section.