Futures Trading Chart

Written by BK Shaw
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When trading in the commodity markets, you should learn how to use a futures trading chart. Commodity traders tend to fall into two categories, those who trade predominantly fundamentally and those who trade technically. The former group watches the news a lot and tries to determine the direction of price movements by looking for fundamental trends. They may use charts to find entry and exit points in a market. Technicians sit in a dark room staring at a computer screen full of charts and trade like that.

Personally, I like to watch the news a lot, use a futures trading chart to identify trends or patterns, and I like to exercise my intuition most of all! I have made many a good call using intuition and common sense. I like to watch the fundamentals, get an intuitive hit and then see my intuition confirmed in a chart formation. It's that feeling of the planets lining up, but it doesn't always mean you're right on the trade!

Technical trading bases its theories on a self-fulfilling prophecy. Trading patterns have been established throughout history. If a certain pattern starts to emerge on a chart, traders recognize the pattern and the knowledge of how a market has reacted to a certain chart formation in the past can indicate how traders will react. In other words, formations on a chart can indicate to a technical trader that a market might start to rally or sell off, and he will make his trading decisions accordingly.

Learning about a Futures Trading Chart

You can learn about a futures trading chart from your broker. They will be happy to share their knowledge. You can also find a lot of information online about charts and how to read them.


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