Technical analysis is a financial analysis tool that uses patterns in the market and analyzing statistics gathered from trading activity, including price movement and volume to forecast future movement and price changes as well as to identify trends. Most commodity traders employ technical analysis and use it in their trading plan.
The technical analysis differs from the fundamental analysis in that it evaluates a security’s fundamental value. It utilizes previous price action to predict price changes in the future. Technical analysis, on the other hand, focuses on charts and patterns of price movement and analytical tools to predict future price changes.
Here are the most commonly used technical indicators to trade commodities.
These markings are used on charts for analysing markets.