Do you watch late-night TV? If you do it is likely that you have seen the ads. A man or woman is dressed in mystical-looking clothes and talking about things like “unlocking your future” or “revealing the secrets of the universe” to you. All you have to do is call the number on your TV screen and pay $4.99 per minute and they will tell you what you need to know. Although it lacks the mysticism, commodity trading can be the same. Thanks to the use of commodity charts, you can reveal some of the secrets of futures trading and you don’t even have to wear the silly robes to do it!
Why Do You Need Commodity Charts?
Commodity charts are a valuable way of monitoring changes in commodities trading. They really represent a quick summary of all your research. By looking at a commodity chart you can see what has occurred over the period of time you are reviewing. Much of understanding trading and investing means that you see what has happened and how those past events can affect what is going to happen in the future. Commodity charts give you that snapshot in time and form a basis for evaluating future movements.
Reasons For Using Commodity Charts
There are three basic reasons to use commodity trading charts. These reasons include analyzing the past, understanding the present and predicting the future. Each one is an important part of commodity investing and can help you do a better job of it.
Commodity Charts For Analyzing The Past
This probably seems like the most obvious use of commodity charts. Each day you record the movements of your commodities: the high and low prices, the opening and closing prices and whether the commodity ended up or down. If you are using Japanese Candlesticks, this is all part of what is called the “real body” of the symbol. Each day that you record this information gives you more information about what has happened with a particular commodity. Commodity charts can help you analyze the past because you can look at a large selection of days and see the trends as they happened, allowing you to draw conclusions about the past.
Commodity Charts For Understanding The Present
What happened yesterday and what is happening today on your commodity chart? The current activity has the most effect on your commodity investing today. If you buy or sell today, these are the prices you will get, not last month’s price or next month’s price. In addition, today’s activity is built on the shoulders of the past so today’s commodity chart always includes more information than yesterday’s. Trading commodities is today’s event.
Commodity Charts For Predicting The Future
If trading commodities is today’s event, why do we even need to a commodity chart for the future? Commodity trading is for today but futures trading is for tomorrow. That’s why we need commodity charts for predicting the future. Futures trading is a speculation about the direction a commodity will take at a later date. Futures contracts are profitable when a trader correctly predicts the movement of a commodity. This is where a system like Candlesticks is so valuable. Candlestick chart analysis allows a trader to view current and past activity and use that information along with the formations that they create to predict what will happen with a commodity. If you know what is going to happen, you can make plans to profit from the upcoming event. Candlestick charting gives you that ability.
Conclusion
Commodity charts are relevant for the past, present and future. An investor that makes good use of these charts can “reveal the secrets of the universe” find profits in the commodities markets.
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