The chart pattern is one of the most important parts of commodity trade market. The main thing of technical analysis is the price patterns repeat itself which means pattern and setup are repeated function in the commodity market. This pattern gives us important clue about the direction of price movement in any commodity chart. By recognizing the chart pattern we can predict how price will move in near future. There are many types of chart pattern in this market, we can implement those pattern in our chart to improve our trading style. Most of the chart patterns work smoothly in the commodity market. There is a high probability that chart pattern will follow the past movement. This is why chat patterns tools are so much profitable tools in the commodity market. Though they have the high probability to work out in the real market but sometimes those patterns do not work in the commodity market. That’s why you have to be more concern about the chart patterns. When you are using chart pattern analysis you need to be alert all the time.
Working on critical support line and key resistance level is important in this type of method. When you mark your trend line then you need to be very careful where you are going to enter the market and which position you are going to exit from the market. You have to know the fact market can move against you for this reason you need to find out where your setup is working or not working on that commodity. You have to determine those ascending tops and descending lows after marking them you should look for whether the market is following those patterns or market decline that setup.
In the chart pattern, we mainly see two types of pattern in this commodity market those are continuous patterns and another one is a reversal pattern. Now there are many kinds of reversal patterns in the commodity market such as double bottoms, double tops, triple bottom triple tops, the head and shoulders patterns, rounding tops and rounding bottoms. Those are the key reversal pattern in this commodity market. And there is few continuous pattern also in this commodity market they are the symmetric triangle, ascending triangle, descending triangle, Pennants, Rectangles. Those are the most common continuous chart pattern in the commodity market.
Double top, triple top is one of the most common scenarios in the commodity market. A double top or triple top happened in the chart after the end of a bullish market. The double top or triple top means there are 2 or 3 peaks will appear in the market. If two or three peaks appear almost in the same price then we might see some reversal movement in that commodity.
Look at the h4 silver chart there was a bullish trend going on in the chart. At 17.20 level, the price made its 1st top after some hour silver price appear in the same price but still price refuse to go up and goes down, after few trading hours the silver price came again at 17.20 price but the price cannot break that level and made another top and this time price went bellow the support area. The setup will confirm when the price broke that support area.