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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.
Commodities Trading Value At Risk News
CS cuts back on commodities trading, suffers loss - Reuters
 Bloomberg | CS cuts back on commodities trading, suffers loss Reuters * Suffers loss in commods trading in Q4 * Steeply cuts VaR in commodities as business shrinks By Dmitry Zhdannikov LONDON, Feb 9 (Reuters) - Credit Suisse posted a fourth-quarter loss in commodities trading, a star performer in other quarters of 2011, ... Credit Suisse's Commodities Value-at-Risk Fell 87% in Quarter |
Goldman Q4 commodities trading risk nearly flat vs Q3 - Reuters
Goldman Q4 commodities trading risk nearly flat vs Q3 Reuters NEW YORK (Reuters) - Goldman Sachs Group Inc reported Wednesday its commodities trading risk in the final quarter of 2011 was nearly flat from the previous quarter and up 13 percent from a year before. Value at risk (VaR) in commodities stood at $26 ... |
The mathematical equation that caused the banks to crash - The Guardian
The mathematical equation that caused the banks to crash The Guardian So derivatives could be traded before they matured. The formula was fine if you used it sensibly and abandoned it when market conditions weren't appropriate. The trouble was its potential for abuse. It allowed derivatives to become commodities that ... |
Want to play in Rs 144-lakh-crore market for commodity futures? Check your ... - Economic Times
Want to play in Rs 144-lakh-crore market for commodity futures? Check your ... Economic Times Kapoor confesses he's hooked to commodity futures trading. Delhi hosted the 10th National Conference of Commodity Futures Market recently. Sounds boring. But it is anything but. Betting on commodity futures involves taking calls on how prices of ... |
Morgan Stanley Q4 commodities risk down 13 percent - Reuters
 Bloomberg | Morgan Stanley Q4 commodities risk down 13 percent Reuters N) reported Thursday its commodities trading risk fell in the final quarter of 2011 from the previous quarter, but rose from a year before. Value at risk (VaR) in commodities stood at $28 million per day in the fourth quarter, versus $32 million in the ... Morgan Stanley Reports Full Year and Fourth Quarter 2011: Morgan Stanley Reports Smaller-Than-Estimated Loss on Trading; Shares Rise Europe Hangs Over US Banks' Fourth-Quarter FX Results |
Hedge Fund Loss at Merchant Snaps Seven Gains in 'Ugly Year': Commodities - Bloomberg
 Bloomberg | Hedge Fund Loss at Merchant Snaps Seven Gains in 'Ugly Year': Commodities Bloomberg Assets fell to about $550 million last month, from $1.56 billion at the end of 2010, said Singapore-based Coleman, who gave up trading to become chief risk officer. The biggest losing bet was in sugar before a 10-month decline ended with winning wagers ... Hedge Fund Snaps Seven Annual Gains in 'Ugly Year': Commodities |
Deutsche Bank Suspends New Issuance of Seven Exchange Traded Notes, Announces ... - MarketWatch (press release)
Deutsche Bank Suspends New Issuance of Seven Exchange Traded Notes, Announces ... MarketWatch (press release) NEW YORK, Feb 09, 2012 (BUSINESS WIRE) -- Deutsche Bank today announced that it will suspend, with immediate effect, any further issuance of seven commodity-based Exchange Traded Notes (ETNs). Trading of the ETNs will not be affected by this suspension ... |
Trafigura hedge fund targets $3 bln by year-end - Reuters
Trafigura hedge fund targets $3 bln by year-end Reuters By Emma Farge and Tom Miles | GENEVA (Reuters) - Galena, the fund arm of trading house Trafigura, aims to grow by almost 50 percent this year to around $3 billion (1.9 billion pounds) as opportunities abound in a choppy market for commodities and ... |