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Futures And Commodities Trading Article
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Basics to Reading Futures Trading Charts
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To the uninitiated in the world of foreign exchange trading, the thought of having to look at and interpret charts could send you flying to the door and swearing the industry altogether. The mix of numbers and factoids on the charts can seem intimidating at first, especially you're not into numbers, but when you really get down to the basics, it's really not as difficult as it looks.
Of course, to be able to read a futures trading chart correctly, you have to have a firm grasp on the basic concepts surrounding foreign exchange trade. Without this knowledge, you will not be able to pass interpretations and assessments on the lines and figures that are showcased in forex charts.
But, for the sake of discussion, let us assume that you already know how the foreign exchange market basically works and just want to know how charts are monitored.
There are three basic charts to track when studying the futures market: The hourly chart, which contains information for the past twelve days, the fifteen-minute forex futures trading chart, which contains data for the past three days, and the five-minute chart, which holds 24-hours worth of financial information and updates.
Experts suggest that you first take a look at hourly forex charts to have a general idea of how the market has performed for the past several days. This will give you a chance to track trends and resistance levels of every opening day.
Once you have done so, take a look at the fifteen-minute futures trading charts to be able to assess what trends are mostly likely to continue for today or the next days.
Studying the five-minute chart last will then allow you to find out the prevailing buy and ask prices, as well as other details you might want to figure out, like the market's behavior at the start of today's trade. From the five minute chart you can also weed out minor trends based on present occurences.
When studying futures trading charts, it is imperative that you take note of the time posted. If you have a world clock, coordinate it with the time posted on the chart so you will have a better idea of where your investments are at a particular time frame.
Some charts are better updated than others, and it will do well if you access charts that are changed in real time, because, as you may well know, seconds of delays in trading can sometimes spell major wins or losses.
In addition, you should also remember that the bid price is different from the ask price. The bid price is the quoted rate, while the ask price is the set rate. In forex trading, you sell a currency based on the bid price and buy based on the ask price. These two numbers will be present on the forex futures trading charts you will be studying.
These are just a few basics to the proper reading of futures trading charts. Of course, it gets more complicated than that, especially when it comes to the assessment part. However, the above tips will help you start out smoothly and will tell you what items to check at the onset of every tracking session to make sure your forex monitoring activities go on without a hitch.
Futures And Commodities Trading Specific links
Futures And Commodities Trading News
Gold prices advance moderately as dollar weakens - The Associated Press
Gold prices advance moderately as dollar weakens The Associated Press - In other Nymex trading, gasoline futures rose 1.18 cents to settle at $1.0882 a gallon, while heating oil fell 2.35 cents to settle at $1.5196 a gallon. ... Gold Rises as Dollar’s Decline Boosts Demand; Platinum Climbs METALS STOCKS Gold ends down near $840 amid oil, stock losses Technical Analysis: Gold and Commodities review |
SEC: Forte says he has no money to repay anyone - Philadelphia Inquirer
 BBC News | SEC: Forte says he has no money to repay anyone Philadelphia Inquirer, PA - Civil charges were brought yesterday in federal court in Philadelphia by the Commodities Futures Trading Commission and by the Securities and Exchange ... Video: Congress Sounds Off Against SEC in Madoff Affair CFTC, SEC Charge Pa. Resident With $50 Million Ponzi Scheme Fund manager charged for $50 million Ponzi scheme |
GRAINS-US grains, soy fall on late fund selling - Forbes
GRAINS-US grains, soy fall on late fund selling Forbes, NY - "The demand side for soybeans is very, very dependent on China's buying," said Anne Frick, analyst with Prudential Bache Commodities. ... Corn, Soybeans Fall as Firmer Dollar, Oil Drop Reduce Demand US grains, soy fall on profit taking US Cash Grain Outlook: Price Plunge Depresses Farmer Selling |
FUTURES MOVERS - MarketWatch
FUTURES MOVERS MarketWatch - "With most of the world either at, or in, recession, the case for a sustainable rally in commodities looks unpersuasive," wrote Edward Meir, an analyst at ... Oil Falls on Bigger-Than-Expected Inventory Gain, Lower Demand Commodities Sell Off, Oil Plunges on Higher-than-Expected ... More evidence of waning energy sinks crude prices |
CME Reports Sharp Dropoff in December Futures Trading - Wall Street Journal
CME Reports Sharp Dropoff in December Futures Trading Wall Street Journal - Meanwhile, ICE benefited from a 53% gain in US commodity trading for December, though average daily commissions for OTC energy products fell 4.6% in the ... |