01
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Trend Following Strategy
Trend following focuses on identifying and trading in the
direction of an established market trend. Traders aim to
participate in sustained upward or downward price movements,
similar to catching and riding a wave.
Technical indicators such as moving averages can help traders
identify potential trends. For example, when a shorter-term
moving average crosses above a longer-term moving average, it
may indicate strengthening upward momentum.
Successful trend following combines technical analysis with
disciplined risk management. Traders may look for commodities
displaying clear price trends and use tools such as MACD or ADX
to assess momentum and trend strength. Stop-loss orders can
also help manage potential losses if market conditions change.
Moving Averages
MACD
ADX
Risk Management
02
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Range Trading Strategy
Range trading focuses on identifying commodities that move
within clearly defined support and resistance levels. Traders
attempt to identify potential opportunities as prices move
between these established boundaries.
Technical indicators such as the Relative Strength Index (RSI)
and Bollinger Bands can help traders assess potential
overbought or oversold conditions and identify possible entry
and exit points.
Effective range trading requires careful timing and disciplined
risk management. Stop-loss orders may be placed beyond the
established trading range to help manage the risk of unexpected
breakouts. This approach may be particularly suited to markets
displaying clear sideways price movements.
Support & Resistance
RSI
Bollinger Bands
Range Analysis
03
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Breakout Strategy
Breakout trading focuses on significant price movements beyond
established support or resistance levels. Traders monitor price
action for signs that a commodity may be entering a new market
phase.
Technical analysis and volume indicators can be used to help
assess the strength of a potential breakout. Increased market
activity may provide additional confirmation that a price
movement has momentum.
Volatile commodity markets such as crude oil, natural gas and
precious metals can experience significant price movements.
Traders using breakout strategies need to make disciplined
decisions and carefully manage the risk of false breakouts and
sudden reversals.
Breakouts
Volume
Momentum
Price Action
04
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Fundamental Analysis Strategy
Fundamental analysis examines the underlying economic,
geopolitical and supply-and-demand factors that can influence
commodity prices.
Energy market analysis may include factors such as production
decisions, geopolitical developments and global economic
growth. Agricultural commodity analysis can involve weather
conditions, crop reports, seasonal patterns and global demand.
Precious metals can be influenced by factors including interest
rates, currency movements and broader economic conditions.
Successful fundamental analysis requires traders to evaluate
multiple sources of information and understand how global
events may affect commodity markets.
Supply & Demand
Economic Data
Geopolitics
Market Fundamentals
