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Reading Trading Trends Based on Futures Charts
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The idea of having to look at and interpret charts could any beginner to the futures trading market scampering to the door and swearing the industry altogether.
The blur of numbers and little facts 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.
To be able to distinguish a trend in 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.
When trying to learn the ins and outs of the futures trading market, you basically have to look at three kinds of charts: 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.
Note the time
When studying trends in 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.
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.
Suggested chart-reading sequence
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.
Of course, the above only scratches the surface as to what you should look for in futures charts. But, at least, they will give you an idea what to watch out for to make sure that the rest of your interpreting session goes on smoothly. Read up more literature on the subject to gain more information.
Commodities Futures Trading Specific links
Commodities Futures Trading News
CFTC chief: Agency is reviewing JPMorgan's trading - BusinessWeek
 Bloomberg | CFTC chief: Agency is reviewing JPMorgan's trading BusinessWeek By MARCY GORDON The head of the Commodity Futures Trading Commission says the agency has begun an investigation into JPMorgan Chase's ill-timed bet on complex financial instruments that led to more than $2 billion in trading losses. CFTC to Release Clearing Proposal for Index Swaps, Gensler Says CFTC Confirms Investigation Into JP Morgan Citing JPMorgan Loss, Regulator Pushes New Oversight |
Investors Least Bullish in 2012 as Crisis Escalates: Commodities - San Francisco Chronicle
 ETF Daily News (blog) | Investors Least Bullish in 2012 as Crisis Escalates: Commodities San Francisco Chronicle Money managers reduced net-long positions across 18 US futures and options by 15 percent to 616841 contracts in the week ended May 15, the lowest since Dec. 27, Commodity Futures Trading Commission data show. Gold bets fell for a second week and to the ... 25 Things Every Financial Advisor Should Know About Commodities (GLD, UNG, SLV ... |
CME Group Expanded Trading Begins - Hoosier Ag Today
 Globe and Mail | CME Group Expanded Trading Begins Hoosier Ag Today After being approved by the Commodity Futures Trading Commission the CME Group has expanded electronic grain futures trading to 21 hours. Trade now only stops between 2 pm and 5 pm Central each day. The new trading schedule started at 5 pm on Sunday. Farmers see danger in expanded grain trading hours CME defends turf with expanded grain trading hours |
NY coffee, cocoa and sugar settle easier - Reuters
NY coffee, cocoa and sugar settle easier Reuters May 21 (Reuters) - Arabica coffee futures trading on ICE closed down more than 2 percent on Monday, as the market followed the commodity complex lower as it lacked its own fundamentals. US cocoa and raw sugar also ended the day in negative territory, ... Arabica coffee 'most undervalued' soft commodity Softs- coffee jumps on India crop woes; cotton, sugar steady |
CFTC-Registered Firms' Excess to Net Capital Ratios - BusinessWeek
CFTC-Registered Firms' Excess to Net Capital Ratios BusinessWeek These firms act as brokers for any commodity for future delivery on or subject to the rules of any exchange. They must file monthly financial reports with the Commodity Futures Trading Commission. Adjusted net capital is the amount of regulatory ... |