HOW TO USE 200 EMA TO BUY COMMODITIES.
1 - 200 EMA standard measurement of bullish
or bearish trends in commodity market.
2 - MA breakouts have multiple false breakouts.
3 - Wait for a breakout and then a retest of EMA.
4 - Buy at breakout of high of breakout candle.
If you want to predict which commodity trading levels are worth to base your trade-off, then look no further than the 200-day moving average.
The 200-day EMA is regarded as being the standard measurement of bullish and bearish trends in the commodity market. However, a breakout of the 200-day EMA is not always a reliable signal. The reason is that like with all technical indicators it’s prone to give multiple false signals.
A simple solution to this very common problem is to wait for the breakout of the 200-day EMA and a retest.
This means that you can buy/sell commodities at the first retest of the 200-day EMA.
Now, we know that not many traders have the right amount of capital to invest in the long-term.
Holding a position for a yearlong period is not suitable for everyone.
If you don’t have a big account balance and the patience to ride the cyclical commodity trends, you’re better off if you stick with short term commodity trading