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Commodity Marketing

Commodity Marketing. Chapter #3 Technical Analysis. Bar Charts. Important market information: Price: high, low, close for the day Volume: number of contracts traded Open Interest: number of contracts that haven’t been offset

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Commodity Marketing

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  1. Commodity Marketing Chapter #3 Technical Analysis

  2. Bar Charts • Important market information: Price: high, low, close for the day Volume: number of contracts traded Open Interest: number of contracts that haven’t been offset • Analyst records past history, but can use this information to help predict

  3. Charting Prices

  4. Bar Charts

  5. Bar Charts • Volume: measure urgency behind price moves • Open Interest: number of contracts at the end of each day that are not offset • rises: new money flowing in • falls: money is leaving the market • Prices & Open interest rise: trend will probably continue • Prices rise & Open Int. falls, uptrend is ending • Prices, Open Int., & Volume fall, trend is about to change

  6. Market Nicknames • Bull = one who expects prices to rise • a rising market • Bear = one who expects prices to fall • a falling market • PricesVolumeOpen IntMarket Rising Rising Rising Bullish Rising Falling Falling Bearish Falling Rising Rising Bearish Falling Falling Falling Bullish

  7. Price Trends • General direction which prices are moving • Prices move: up, down or sideways • Sideways Trend: called a trading range • Resistance line (upper level) prices turn down • Support line (lower level) prices turn up

  8. Sideways Trend

  9. Trends • Uptrend: higher highs, higher lows • Draw a line under rising bottoms • Downtrend: lower highs, lower lows • Draw a line under falling tops • Takes two to define a trend, three to confirm it

  10. Uptrend

  11. Downtrend

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