1. Analytical Tools/ Technical Analysis

2. A Guide to Timing of Pricing Decisions Answer the question of when to price, NOT what price Answer the question of when to price, NOT what price What price is determined by your marketing plan What price is determined by your marketing plan Based on history and certain tendencies Based on history and certain tendencies Works because of the “Herd Mentality” of traders Works because of the “Herd Mentality” of traders

3. Bar Graphs CME Group Commodity Marketing Manual, Chapter 5

4. CME Group Commodity Marketing Manual, Chapter 5, Page 51

5. Point and Figure Chart The analyst uses an X to indicate the day's price when prices are rising. When the prices reverse and fall, the analyst goes to the next column and records O's. Helps to smooth out the daily changes in the chart CME Group Commodity Marketing Manual, Chapter 5, Page 52

6. Sell Buy Sell Trend Lines CME Group Commodity Marketing Manual, Chapter 5, Page 51

7. Trend Lines Upward Trend Line Downward Trend Line http://stockcharts.com/help/doku.php?id=support:understanding_pnf_charts#simple_p_f_chart_pat

8. Triangles Triangles generally interrupt a trend, and occur when supply and demand are temporarily balanced. Upward price movement is balanced by selling. Downward price movement is countered by buying. After this pause prices tend to break out, generally continuing in the direction of the original trend. The breakout can indicate a buy or sell signal CME Group Commodity Marketing Manual, Chapter 5, Page 55

9. CME Group Commodity Marketing Manual, Chapter 5, Page 51 Triangle

10. Resistance and Support Planes CME Group Commodity Marketing Manual, Chapter 5, Page 56

11. Support and Resistance Support Resistance http://stockcharts.com/help/doku.php?id=support:understanding_pnf_charts#simple_p_f_chart_pat

12. Double Bottom

14. Trading Volume

15. Open Interest

16. CME Group Commodity Marketing Manual, Chapter 5, Page 53

17. Key Reversal CME Group Commodity Marketing Manual, Chapter 5, Page 57

18. Key Reversal

19. Island Reversal

20. These two will be close to equal CME Group Commodity Marketing Manual, Chapter 5, Page 58 Chart Gaps

22. Head and Shoulders Projected Move Distance between Head and Neckline CME Group Commodity Marketing Manual, Chapter 5, Page 54

23. Relative Strength Index

24. Moving Averages Averages the price for several days Averages the price for several days Smoothes out the short term peaks and valleys Smoothes out the short term peaks and valleys When lines are crossed indicates a buy or sell When lines are crossed indicates a buy or sell CME Group Commodity Marketing Manual, Chapter 5, Page 60

25. Moving Averages Sell Buy

26. Practice (Dec Milk)

27. Practice (Mar Corn)

28. Much of this information came from a video “Hedging and Options Workshop” Vol 4: ABC’s of Technical Analysis Much of this information came from a video “Hedging and Options Workshop” Vol 4: ABC’s of Technical Analysis It is available from the NICC Library (332.6 Hed) It is available from the NICC Library (332.6 Hed)

29. Summary Charts are an “indicator” of movement Charts are an “indicator” of movement Powerful tool for Selective Hedgers Powerful tool for Selective Hedgers “Discipline” is the Key “Discipline” is the Key Don’t try too many approaches Don’t try too many approaches Pay attention to volume, open interest, and RSI Pay attention to volume, open interest, and RSI

30. Homework Chapter 5 Exercise (Page 61) Chapter 5 Exercise (Page 61) Chart two different contract months of Lean Hogs for five days Chart two different contract months of Lean Hogs for five days