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Commodity Market Liquidity              By   www.CandlestickForums.com
Commodity market liquidity oftencorrelates very well with commodity       market trading profits.    www.CandlestickForums...
There are three benefits to traders in  high commodity market liquidity.     www.CandlestickForums.com
The first is that it is easier to enter and                exit trades.      www.CandlestickForums.com
The second is that bid and ask prices are          commonly closer.       www.CandlestickForums.com
The third is that with high trading volume and liquidity the statistics of online trading software as well as thepredictiv...
Traders can find reports of the previous day’s trading volume online as well as    updates during the trading day.      ww...
A useful measure of trading volume and a useful predictor of trading volume is             open interest.      www.Candles...
This measure is the number of opencontracts between buyers and sellers in       commodity futures trading.      www.Candle...
To learn to use commodity marketliquidity to the maximum advantage in        profiting from commodity    trading, traders ...
Commodities that can offer good  commodity market liquidity includetrading in corn futures, oil futures, and              ...
Each of these is a commodity that trades   at high volume and high liquidity.       www.CandlestickForums.com
In the case of each commodity both fundamental and technical analysis are  necessary to understand the scope oftrading and...
Candlestick charts of these commodities will help predict price movement and allow traders to buy or sell commodity future...
The tight spreads between bid and askprices on commodity futures contractswill allow the trader to profit by buying  and s...
Understanding the fundamental analysisof gold, oil, or corn futures will give the  trader an overall perspective of the   ...
However, it is technical analysis that  predicts the next price move.     www.CandlestickForums.com
The use of Candlestick chart patternswill predict market moves within thetrading range dictated by commodity            fu...
Even though corn, oil, and goldcommodity futures all offer high liquidity  they are driven by different factors.       www...
Gold and other precious metals typically  do well when investors are worried  about inflation or when there is the     thr...
Corn and other good stuffs are driven by         supply and demand.       www.CandlestickForums.com
When there is a draught in a majorproducing area such as the AmericanMid West the price of corn futures will go up as trad...
When the economy slides into a  recession the price of oil futurestypically falls as traders anticipate a   reduced indust...
It is when the fundamentals of these     commodities change that there is typically increased commodity market    liquidit...
Hedging commodities is the province of   gold mining operations, farming cooperatives, oil producers and their            ...
Increased activity by these big market   players provides the trader with an  opportunity for profit in the resultingincre...
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Commodity Market Liquidity

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Commodity Market Liquidity

Commodity market liquidity often correlates very well with commodity market trading profits. There are three benefits to traders in high commodity market liquidity. The first is that it is easier to enter and exit trades. The second is that bid and ask prices are commonly closer. The third is that with high trading volume and liquidity the statistics of online trading software as well as the predictive ability of time honored tools such as Candlestick pattern formations tend to be more precise. Traders can find reports of the previous day’s trading volume online as well as updates during the trading day. A useful measure of trading volume and a useful predictor of trading volume is open interest. This measure is the number of open contracts between buyers and sellers in commodity futures trading. To learn to use commodity market liquidity to the maximum advantage in profiting from commodity trading, traders are wise to take Commodity and Futures Training and to develop their skills in Candlestick analysis of commodity prices.

Commodities that can offer good commodity market liquidity include trading in corn futures, oil futures, and gold futures. Each of these is a commodity that trades at high volume and high liquidity. In the case of each commodity both fundamental and technical analysis are necessary to understand the scope of trading and the day by day or minute by minute changes in commodity price. Candlestick charts of these commodities will help predict price movement and allow traders to buy or sell commodity futures contracts with the reasonable expectation of making a profit with anticipated market moves. The tight spreads between bid and ask prices on commodity futures contracts will allow the trader to profit by buying and selling at smaller intervals in a market trend than when the market is less liquid and the spread is greater. Understanding the fundamental analysis of gold, oil, or corn futures will give the trader an overall perspective of the market. However, it is technical analysis that predicts the next price move. The use of Candlestick chart patterns will predict market moves within the trading range dictated by commodity fundamentals.

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Transcript of "Commodity Market Liquidity"

  1. 1. Commodity Market Liquidity By www.CandlestickForums.com
  2. 2. Commodity market liquidity oftencorrelates very well with commodity market trading profits. www.CandlestickForums.com
  3. 3. There are three benefits to traders in high commodity market liquidity. www.CandlestickForums.com
  4. 4. The first is that it is easier to enter and exit trades. www.CandlestickForums.com
  5. 5. The second is that bid and ask prices are commonly closer. www.CandlestickForums.com
  6. 6. The third is that with high trading volume and liquidity the statistics of online trading software as well as thepredictive ability of time honored toolssuch as Candlestick pattern formations tend to be more precise. www.CandlestickForums.com
  7. 7. Traders can find reports of the previous day’s trading volume online as well as updates during the trading day. www.CandlestickForums.com
  8. 8. A useful measure of trading volume and a useful predictor of trading volume is open interest. www.CandlestickForums.com
  9. 9. This measure is the number of opencontracts between buyers and sellers in commodity futures trading. www.CandlestickForums.com
  10. 10. To learn to use commodity marketliquidity to the maximum advantage in profiting from commodity trading, traders are wise to takeCommodity and Futures Training and to develop their skills in Candlestick analysis of commodity prices. www.CandlestickForums.com
  11. 11. Commodities that can offer good commodity market liquidity includetrading in corn futures, oil futures, and gold futures. www.CandlestickForums.com
  12. 12. Each of these is a commodity that trades at high volume and high liquidity. www.CandlestickForums.com
  13. 13. In the case of each commodity both fundamental and technical analysis are necessary to understand the scope oftrading and the day by day or minute by minute changes in commodity price. www.CandlestickForums.com
  14. 14. Candlestick charts of these commodities will help predict price movement and allow traders to buy or sell commodity futures contracts with the reasonable expectation of making a profit with anticipated market moves. www.CandlestickForums.com
  15. 15. The tight spreads between bid and askprices on commodity futures contractswill allow the trader to profit by buying and selling at smaller intervals in amarket trend than when the market is less liquid and the spread is greater. www.CandlestickForums.com
  16. 16. Understanding the fundamental analysisof gold, oil, or corn futures will give the trader an overall perspective of the market. www.CandlestickForums.com
  17. 17. However, it is technical analysis that predicts the next price move. www.CandlestickForums.com
  18. 18. The use of Candlestick chart patternswill predict market moves within thetrading range dictated by commodity fundamentals. www.CandlestickForums.com
  19. 19. Even though corn, oil, and goldcommodity futures all offer high liquidity they are driven by different factors. www.CandlestickForums.com
  20. 20. Gold and other precious metals typically do well when investors are worried about inflation or when there is the threat of economic or political disruption. www.CandlestickForums.com
  21. 21. Corn and other good stuffs are driven by supply and demand. www.CandlestickForums.com
  22. 22. When there is a draught in a majorproducing area such as the AmericanMid West the price of corn futures will go up as traders expect there to be shortages. www.CandlestickForums.com
  23. 23. When the economy slides into a recession the price of oil futurestypically falls as traders anticipate a reduced industrial demand for petroleum products. www.CandlestickForums.com
  24. 24. It is when the fundamentals of these commodities change that there is typically increased commodity market liquidity as more traders enter the market in search of profits andproducers and their customers engage in hedging to guarantee prices. www.CandlestickForums.com
  25. 25. Hedging commodities is the province of gold mining operations, farming cooperatives, oil producers and their customers. www.CandlestickForums.com
  26. 26. Increased activity by these big market players provides the trader with an opportunity for profit in the resultingincreased commodity market liquidity. www.CandlestickForums.com
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