What are commodity charts?
Commodity charts are graphs that display information about commodities and reveal their performance over time. The commodity is a physical substance such as an agricultural product or a natural source that trades on a separate stock exchange - most often Comex in the US or Eurex in Europe. Commodity graphs represent a rapid visual summary of a particular commodity for a specified period of time and can be analyzed to identify trends or to evaluate future movements. Three basic types of commodity graphs are column charts, candlestick graphs and point and character charts. The horizontal plane refers to the specified time frame from minutes to years and the vertical plane shows the range of prices within this time framework. The price variation is marked with a bar. The upper part of the bar is the highest in stock per day and the lower part is the lowest, while ticks to the left and transport represent initial and final prices.
candlestick graph combines a line gridAF with a column chart and also shows prices movements over time. Like column charts, they include high, low, opening and final stock prices for a given period, but also show how these prices relate to prices from the previous period. This additional information creates a pattern that allows analysts to understand investors' sentiment. In general, they agree that patterns revealed on the candlestick chart offer the best visual display of the market.
Points and images graphs follow daily prices' movements without indicating a time frame and are often not used. However, they are useful for monitoring the levels of supply and demand because they filter out prices. This type of graph also clearly displays the support level when the demand is sufficiently strong enough to prevent the price drop and resistance, when the supply will exceed the demand and the price will not increase further. This can help traders determine the input and output points on the market.
The purpose of commodity graphs is to allow the user to evaluate trends. Markets repeat uRaty patterns and graphs that analysts can decrypt. They can be used to explore the past, understand the present and predict the future. In order to be useful to be useful, the analyst must have skills to interpret data and then determine the procedure.