Commodity VolatilityBywww.CandlestickForums.com
Commodity volatility can be significantlymore than volatility in interest rates, andforeign currency exchange rates.www.Ca...
Measured commodity volatility asreported in standard deviations in pricevariability historically does not settlebelow 15 p...
As a rule supply and demand are themain factors in commodity volatility.www.CandlestickForums.com
Commodity suppliers and commoditiesbuyers often stockpile in order tomaintain price stability but whenwww.CandlestickForum...
shortages occur either due toproduction failure or rising demandcommodity prices can go updramatically.www.CandlestickForu...
It is commodity volatility that makestrading commodities profitable fortraders.www.CandlestickForums.com
Using both fundamental and technicalanalysis, traders can profit by accuratelypredicting commodity price changes.www.Candl...
Commodity and futures training canhelp someone beginning commodityfutures trading to understand the use ofwww.CandlestickF...
technical analysis tools such asCandlestick chart formations in tradingcommodities.www.CandlestickForums.com
It is the volatility of commoditiesmarkets that leads producers and buyersto hedging to protect their investmentrisk.www.C...
By hedging, an agricultural cooperative,for example, will sell corn futures inorder to guarantee a stable price for partof...
Oil refiners will buy oil futures toguarantee a set price a year or morehence.www.CandlestickForums.com
Hedging commodities is usedthroughout the commodities marketsand supplies the majority of tradingvolume.www.CandlestickFor...
Traders who speculate on commodityvolatility can thank the major players inthe commodities markets for the volumeand liqui...
The volatility of some commoditiesbecomes a social issue when theprosperity of a third world countrywww.CandlestickForums....
depends upon high prices forcommodities such ascoffee, bananas, and cocoa.www.CandlestickForums.com
Unfortunately commodity markethistory shows us that commodityvolatility has always been with usand, probably, always will....
Only with an effective hedging strategycan producers protect themselves fromdevastating market fluctuations.www.Candlestic...
However, such strategies often requirethe kind of political and economicstability that emerging nations sadlylack.www.Cand...
For commodities traders it is thevolatility of the commodities marketsthat makes trading commoditiesfinancially attractive...
Going back centuries rice traders in theJapan of the Samurai developed a set oftools to take advantagewww.CandlestickForum...
of the ways in which the commodityprices, driven by commodity volatility,repeat themselves.www.CandlestickForums.com
The development of Candlestick chartanalysis allowed traders to let themarket tell them what the market woulddo.www.Candle...
This is still true today as traders useCandlestick chart patterns to predictprice movement and determine whereto most prof...
Candlestick pattern formations are notonly useful in making sense ofcommodity volatility futures trading butalso in helpin...
The combination of volatility with highvolume and high liquidity allows tradersto enter and exit trading positions atrelat...
A fluid market allows for more accuratetechnical analysis.www.CandlestickForums.com
However, the trader needs to payattention to the market as commoditywww.CandlestickForums.com
volatility can change a profitable dayinto a loss when the trader does not staytuned to his or her trading signals.www.Can...
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Commodity Volatility

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Commodity Volatility

Commodity volatility can be significantly more than volatility in interest rates, and foreign currency exchange rates. Measured commodity volatility as reported in standard deviations in price variability historically does not settle below 15 percent and often rises to more than fifty percent. As a rule supply and demand are the main factors in commodity volatility. Commodity suppliers and commodities buyers often stockpile in order to maintain price stability but when shortages occur either due to production failure or rising demand commodity prices can go up dramatically. It is commodity volatility that makes trading commodities profitable for traders. Using both fundamental and technical analysis, traders can profit by accurately predicting commodity price changes. Commodity and futures training can help someone beginning commodity futures trading to understand the use of technical analysis tools such as Candlestick chart formations in trading commodities.

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Commodity Volatility

  1. 1. Commodity VolatilityBywww.CandlestickForums.com
  2. 2. Commodity volatility can be significantlymore than volatility in interest rates, andforeign currency exchange rates.www.CandlestickForums.com
  3. 3. Measured commodity volatility asreported in standard deviations in pricevariability historically does not settlebelow 15 percent and often rises tomore than fifty percent.www.CandlestickForums.com
  4. 4. As a rule supply and demand are themain factors in commodity volatility.www.CandlestickForums.com
  5. 5. Commodity suppliers and commoditiesbuyers often stockpile in order tomaintain price stability but whenwww.CandlestickForums.com
  6. 6. shortages occur either due toproduction failure or rising demandcommodity prices can go updramatically.www.CandlestickForums.com
  7. 7. It is commodity volatility that makestrading commodities profitable fortraders.www.CandlestickForums.com
  8. 8. Using both fundamental and technicalanalysis, traders can profit by accuratelypredicting commodity price changes.www.CandlestickForums.com
  9. 9. Commodity and futures training canhelp someone beginning commodityfutures trading to understand the use ofwww.CandlestickForums.com
  10. 10. technical analysis tools such asCandlestick chart formations in tradingcommodities.www.CandlestickForums.com
  11. 11. It is the volatility of commoditiesmarkets that leads producers and buyersto hedging to protect their investmentrisk.www.CandlestickForums.com
  12. 12. By hedging, an agricultural cooperative,for example, will sell corn futures inorder to guarantee a stable price for partof their production.www.CandlestickForums.com
  13. 13. Oil refiners will buy oil futures toguarantee a set price a year or morehence.www.CandlestickForums.com
  14. 14. Hedging commodities is usedthroughout the commodities marketsand supplies the majority of tradingvolume.www.CandlestickForums.com
  15. 15. Traders who speculate on commodityvolatility can thank the major players inthe commodities markets for the volumeand liquidity that routinely makeprofitable commodity trading possible.www.CandlestickForums.com
  16. 16. The volatility of some commoditiesbecomes a social issue when theprosperity of a third world countrywww.CandlestickForums.com
  17. 17. depends upon high prices forcommodities such ascoffee, bananas, and cocoa.www.CandlestickForums.com
  18. 18. Unfortunately commodity markethistory shows us that commodityvolatility has always been with usand, probably, always will.www.CandlestickForums.com
  19. 19. Only with an effective hedging strategycan producers protect themselves fromdevastating market fluctuations.www.CandlestickForums.com
  20. 20. However, such strategies often requirethe kind of political and economicstability that emerging nations sadlylack.www.CandlestickForums.com
  21. 21. For commodities traders it is thevolatility of the commodities marketsthat makes trading commoditiesfinancially attractive.www.CandlestickForums.com
  22. 22. Going back centuries rice traders in theJapan of the Samurai developed a set oftools to take advantagewww.CandlestickForums.com
  23. 23. of the ways in which the commodityprices, driven by commodity volatility,repeat themselves.www.CandlestickForums.com
  24. 24. The development of Candlestick chartanalysis allowed traders to let themarket tell them what the market woulddo.www.CandlestickForums.com
  25. 25. This is still true today as traders useCandlestick chart patterns to predictprice movement and determine whereto most profitably trade.www.CandlestickForums.com
  26. 26. Candlestick pattern formations are notonly useful in making sense ofcommodity volatility futures trading butalso in helping to make decisions inoptions trading of commodities futures.www.CandlestickForums.com
  27. 27. The combination of volatility with highvolume and high liquidity allows tradersto enter and exit trading positions atrelatively low cost.www.CandlestickForums.com
  28. 28. A fluid market allows for more accuratetechnical analysis.www.CandlestickForums.com
  29. 29. However, the trader needs to payattention to the market as commoditywww.CandlestickForums.com
  30. 30. volatility can change a profitable dayinto a loss when the trader does not staytuned to his or her trading signals.www.CandlestickForums.com

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