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Things You Need to Know About Futures Trading Commodities Charts
from:Futures 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.
Trading Futures And Commodities News
Speculators trim bets against US dollar - CFTC - Reuters
 Reuters India | Speculators trim bets against US dollar - CFTC Reuters NEW YORK, Sept 3 (Reuters) - Currency speculators trimmed bets against the US dollar in the latest week, data from the Commodity Futures Trading Commission ... Large spec longs surge in CBOT corn-CFTC US CFTC Data: Specs Accts Add to Euro Shorts, Trim Yen Longs Flash crash probe plays down quote-stuffing |
CFTC proposal to gather more data a burden: FIA - Reuters
CFTC proposal to gather more data a burden: FIA Reuters The association, which represents futures dealers, investors and exchanges, said the Commodity Futures Trading Commission should postpone implementing the ... CFTC's Retail Currency Rules Back Off Strictest Leverage CFTC Issues New Forex Trading Rules CBOT trader banned for life, owes $4M |
NYMEX-Crude choppy after bounce up on jobs report - Reuters
NYMEX-Crude choppy after bounce up on jobs report Reuters Commodities Futures Trading Commission positions data at 3:30 pm EDT (1930 GMT) on Friday. 9:42 LAST NET PCT LOW HIGH CURRENT DAY AGO. |
Cotton Falls From Highest Price Since March 2008 on US Economy Concerns - Bloomberg
 Fibre2fashion.com | Cotton Falls From Highest Price Since March 2008 on US Economy Concerns Bloomberg Cotton futures for December delivery fell 0.04 cent to settle at 89.45 cents a pound at 2:34 pm on ICE Futures US in New York. Earlier, the commodity ... Cotton prices surge to 15-year peak |
Commodities Finish Trading Mixed on Economic Data; Crude Futures Higher, Gold ... - NASDAQ
 Reuters | Commodities Finish Trading Mixed on Economic Data; Crude Futures Higher, Gold ... NASDAQ Commodities finished the trading day mixed as oil gains on a renewed positive outlook for the economy. Gold finished lower. Crude-oil for October delivery ... PRECIOUS METALS: Gold Rises Above $1250/Oz On Refuge Demand Comex Gold volume up vs Aug. 09, down vs July Gold inches up, copper hits four-month high |