What are the best ways to identify potential breakouts in industrial metals using technical analysis?

I once thought the same - so I included a section in my MBA thesis (Investing in Sth African Gold Shares) in 1983 and found some chart patterns had an accuracy of ~60% to 70% (based on 2 studies- first was 36 gold stocks between July 1971 & Sept 1975 , and second study 20 shares [14 were gold stocks] between 1969 and 1976) which I regarded as too high to ignore- and have used them combined with fundamental analysis since then.

The best way is to use multi-time frame analysis on the higher timeframes - monthly, weekly and daily. If all the 3 timeframes are moving in the same direction and breaking through resistance levels in a bull market, you have a trend in play. My key filters are the previous year's high on the monthly and the 200sma and the 50sma on the weekly and daily. If above these levels, the market is bullish. Gold, for example. If below these levels, bearish. Palladium, for example.

I use fundamental analysis. I find 'technical' analysis (charting) backward looking, and am generally unimpressed with it. All it shows is historic trends, but do not indicate forward detail with any accuracy.

The best ways to identify potential breakouts in industrial metals using technical analysis include monitoring price patterns such as bullish chart formations, observing increasing trading volume accompanying price movements, and analyzing key technical indicators like moving averages or momentum oscillators for confirmation signals.

Identifying breakout opportunities in industrial metals using technical analysis involves monitoring volume, volatility, and chart patterns. High volume and volatility often precede breakouts, indicating strong market interest and momentum. Traders also look for chart patterns like triangles and flags, along with key support and resistance levels, to confirm potential breakouts. Combining these indicators helps traders spot opportunities for trend shifts and make informed trading decisions in the industrial metals market.

Utilizing the MACD and Bollinger Bands together provides a potent approach for confirming breakouts in the trading of industrial metals. The MACD serves to confirm the momentum behind a potential breakout, indicated by a cross above or below its signal line, while Bollinger Bands gauge market volatility and the likelihood of a breakout, especially during periods of tight band convergence known as "Bollinger Band Squeezes. When a price breakout occurs above the upper Bollinger Band accompanied by a bullish MACD cross, it suggests a strong signal for entry into a trade. This combination strategy enhances decision-making by leveraging both momentum and volatility indicators, improving the accuracy of breakout predictions.

If we are intend to identify breakouts in any asset, it is important to analyze the strength of moving prices. Even though crossing strategy between prices and moving average be a good way to determine breakout context, we need to use mommentum indicaticators to confirm such trend. This is so because asset moving may be weakened and false signal may be set on. In this case, we lost the trend continuation. We can use volume analysis, mommentum indicator or some oscilator to verify and confirm breakouts.

To identify potential breakouts in industrial metals, traders often utilize chart patterns and candlestick formations. Chart patterns, such as triangles and flags, provide insights into market psychology and behavior, while candlestick formations offer detailed price action analysis. Breakouts occur when these patterns or formations are completed or confirmed, signaling a potential change in supply and demand dynamics. For instance, the formation of a triangle pattern or a hammer candlestick in the price of steel may suggest a bullish breakout and a reversal of a downtrend.

Don't forsake the fundamentals of the market when conducting technical analysis lest you find yourself in a situation where the data says one thing and the market is saying another more often than usual