subject: Does forex trading systems overlap with commodity trading systems? [print this page] Does forex trading systems overlap with commodity trading systems?
I am sincerely convinced of the fact that pretty much the same logic should be applicable in case of the different trading alternatives. May it be a forex trading system or a commodity trading system one thing is for certain: If you trade on technical basis then all instruments will share certain characteristics in common. A break-out, a swing trade, a RSI break-through and a volume spike are all the same even if you trade the commodity markets or you choose to go for trading securities or you rather hunt for pips in the forex market. The logic is all the same and they can all be considered as brothers and sisters in a big family where similar family traits are always present.
The trading system that I use is strictly focusing on trend trading and it signs entry points only when prior price movements are likely to trigger a definite, new, consecutive price wave. The technical tools that are included in the currency trading system part of the my software can also be used for trading commodities because - as I have already emphasized - pretty much the same reactions can be expected for the same triggers in both of the cases. I have tested my trading strategy which I considered to be the flagship in my forex trading system and found a great correlation between the two separate markets.
And what is the reason behind these correlations and findings? It is quite natural for market participants to have a specific reaction to a specific market set-up. The technical analysis uses the happening of the past to predict the upcoming reactions in the future. As the more experienced traders used to say: History does not repeat itself, but it does rhyme. Mark Twain was that gentleman who invented this truthful saying, even though he might have not been aware how much it actually holds true for commodity and forex trading.
The underlying strategy that I use is labelled as Stealth Forex Trading System. I am convinced that this is a good alternative it has already proven itself to me under various market conditions. If you would like to get more information about this system then go to the official website at www.stealthforex.com and read the detailed description of the strategy. I am aware of the fact that my personal traits, feeling of comfort, and risk-tolerance level takes up a great deal in the successful collaboration between me and my currency trading system but I must admit that it was worth the energy and time for me to find a reliable and responsible companion.
A good commodity and forex trading system can identify the current market conditions which is likely to have been formed since the new generation of markets came to existence. Take these examples from the past, examine the behaviour patterns associated with an economic influences and understand the market reactions that they triggered. If you stick to this logic then every market will look alike to you and with the very same ideas in mind you can go to defeat the charts may that be of gold, currency, oil or common stocks.
