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Reading Trading Trends Based on Futures Charts
from: Maxx Trading GuidesThe 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've 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'll 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.
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Wheat Futures Trading News
US Wheat Jumps Despite 'Abysmal' Export Sales - FXStreet.com
1302 EST [Dow Jones] - Fund buying is helping lift U.S. wheat futures, despite "abysmal" export sales, an analyst says. Weekly U.S. wheat export sales of 41,900 metric tons were a marketing-year low and below trade expectations. "For the near-term ...
Read more...GRAINS-U.S. grains, soy fall on late fund selling - Forbes
CHICAGO (Reuters) - U.S. grain and soybean futures fell Thursday amid some late selling by funds and pressure from weakness in the crude oil market, traders said. Soybean prices closed lower despite trading in positive territory for much of the day ...
Read more...Chicago wheat prices lift off the bottom in Dec - Farm Weekly
Chicago Board of Trade wheat futures prices have lifted back above the $US6/bushel mark in the final week's trading for 2008. On Friday, in the first sale for 2009, they closed at $6.11/bus for the March '09 contract. Chicago wheat prices have risen ...
Read more...KCBT Volume for 2008 Third Largest in Exchange History - Wisconsin Ag Connection
Kansas City Board of Trade trading volume for 2008 amounted to 3,965,924 contracts, which was the third largest in its 153-year history. Trading volume in 2007 amounted to 4.67 million contracts, while 2006 volume was 5.29 million contracts. Wheat ...
Read more...U.S. grains, soy fall on profit taking - Guardian Unlimited
CHICAGO, Jan 7 (Reuters) - U.S. grain and soybean futures fell sharply on Wednesday as traders locked in profits following strong rallies which pushed wheat and soybean prices to three-month highs during the past month. Wheat futures dropped 4.7 ...
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