The classic price patterns you see
from old school technical analysis
still work today.
Even with all the fancy computer programs and advanced indicators, if you look at the weekly and monthly charts, you’ll find standard reliable price patterns. Why have the behavior of the markets not changed with all this technology?
Because we are dealing with the human spirit and emotions. The markets are largely driven by fear and greed. Fear of loss and greed for more gain.
These human emotions have remained, essentially, the same throughout recorded history as we know it, and they effect market prices the same now as they did fifty or eighty years ago.
These same price swings, driven by fear and greed, have been documented in today’s real world stock markets, street prices for common goods and in all manner of markets where items are traded for currency throughout history.
Basic Technical Analysis Works.
Technical Analysis is like watching a golf game in slow motion, but at the same time, the futures markets are a fast-moving merry-go-round, and you have to get up to speed before jumping on, or you won’t be golfing for long!
This is my first time playing with screenr and I’m going to talk about corn prices.
It looks to me, from all of my meager experience, that corn prices are building to go higher. I haven’t been looking at the weather or the fundamentals, I’ve only been looking at the technical indicators by reviewing the price charts.
If I go into the weekly charts, it’s looks like it’s been lolling around and not really doing much when looking at the weekly view, but when I go to the daily chart, we can see that we had a gap move out of this bounce over here – increased volume in trading when prices are rising, reduced volume when prices are retracing.
When I go back to the monthly chart, this could now be the long term bottom forever in corn prices. (sips coffee) This looks like it’s building a triangle formation – a very large fight in the market – it’s hit a bottom here, it’s hit a bottom here and prices have been tightening up.
It looks to me like corn prices are going up, this is Aug 2 2010, and as prices move above this level I think they are going to surge higher for a while. and if I do the 50% rule… they are going to move up to this area over the next little while.
We’ll see what goes on on Futures-Trading-Primer.com I’m going to be looking for your input and your comments here – and if there is enough interest, I’ll create a forum so we can talk about the agriculturals, including the seasonal trading methods and start clearing up some details on when to buy and sell these commodities.
