Welcome to Commodities Trading Guide
Commodities Futures Trading Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
Things You Need to Know About Futures Trading Commodities Charts
from: TanadyFutures Trading Commodities charts are more than just lines and patterns. Trading charts are essential in a futures commodities trading company’s success. Through this charts, traders will be able to predict future outcome of bonds and prices.
To fully understand futures trading commodities charts you need to know first the different terminologies used in this graphs.
So the first question will be what are price charts? A price chart is simply a series of prices plotted over a detailed time frame. In trading terms charts are often referred to as time series plots.
On a futures trading commodities chart, the vertical axis or the commonly known y-axis stands for the price range and the horizontal axis or more commonly known as the x-axis is for the time scale.
Technical futures commodity traders uses charts for security and to forecast would be prices in the future. Although each trader uses charts exclusively, the use of this charts are not just bounded for technical use.
Because charts are presented in an illustrative manner they an also be of great use to fundamental traders because it gives them an open view to the price trends of their futures trading commodities products.
In trading there are four basic charts for your futures trading commodities charts; The Line Charts, The Bar Charts, The Candle Stick Charts and the Point and Figure Charts.
Futures trading commodities line charts is one of easiest charts to read and make. Line charts are formed by interconnecting price points of a certain product over a period of time. The price points in this charts usually refers to the closing point of a certain site.
Most investors gives out more importance to the closing point of sale price, be it high or low. This is done because this kind of observation gives less importance to intraday swings.
The Bar chart is one of the most used futures trading commodities charts. The price points that are required in this field are the high, low and close points for each period of a bar chart.
The high and low are represented by the start and the end of a chart and the closing point is represented by the horizontal line that breaks in the vertical closing and opening points.
Bar charts can also be done by using four entities, the open, close, high and low price points. The only difference is that in this kind of bar chart two horizontal lines will be visible on the vertical price point. This two horizontal line will represent the opening and closing of futures commodities trading prices.
The next chart that is widely used in the futures commodities trading is the candlestick chart which originated in Japan some 300 years ago.
For this kind of futures trading commodities chart the trader will need the open, high, low and close of a certain price point. A candlestick chart is based on daily price or intraday prices, but on certain instances a weekly candlestick chart can be made making Monday as its starting point and closes out on Friday.
The last chart is the point and figure chart. This chart is solely based on price movements and does not take time into its chart entity unlike the previous charts we had discussed. But the x-axis is still present in the chart but it does not pertain that much of an importance compared to the other charts.
There are numerous charts in the market right now and each has its own unique representation of prices. So one piece of advice is to not stick to just one chart for analysis, other charts may give you the answers that you need. Experiment with other charts and you will see the differences that it has.
To Your Stock Trading Success!
"Whether You're a Novice or Experienced Trader, We Can Teach You How to Improve Your Trading With Options...". Discover How to Limit Your Risk While Maximizing Your Profits in Today's Markets! http://www.options-university.biz
Commodities Futures Trading News
New Star Plunges, Regulator Denies Suspension Request (Update1) - Bloomberg
Dec. 1 (Bloomberg) -- New Star Asset Management Group Ltd. dropped 71 percent in London trading after the U.K. fund company, founded by John Duffield , said it’s in talks with lenders and market authorities rejected its request to suspend the stock ...
Read more...Gold, other commodities tumble on economic data - WTOP Radio
NEW YORK (AP) - Gold prices and other commodities tumbled Monday, as confirmation that the nation is in a recession further unnerved investors already concerned about a drop off in demand for raw materials. The National Bureau of Economic Research ...
Read more...Food prices? Roll the dice - Minneapolis Star Tribune
Here's a business idea: open an insurance brokerage across from Mystic Lake and sell policies for people's losses at the casino. Make a … read more bundle of money. Then when it's time to pay out - get the City of Prior Lake to cover your losses ...
Read more...Oil Falls Below $50 After OPEC Delays Decision to Curb Output - Bloomberg
Dec. 1 (Bloomberg) -- Crude oil fell below $50 a barrel after the Organization of Petroleum Exporting Countries deferred a decision to reduce output until its next meeting on Dec. 17. OPEC said it will use the time to gauge the impact of a 1.5 ...
Read more...Trustee alleges brokers bribed fund manager - CNN Money
NEW YORK (Fortune) -- A lawsuit filed in the wake of the spectacular explosion of a once-sleepy cash management firm in the summer of 2007 is pointing to a corrupt business relationship between its head trader and some brokers as the basis for its ...
Read more...