1. Chapter #3 Technical Analysis
Commodity Marketing
Chapter #3
Technical Analysis

2. Bar Charts Important market information:
Price: high, low, close for the day
Volume: number of contracts traded
Open Interest: number of contracts that haven’t been offset
Analyst records past history, but can use this information to help predict

3. Charting Prices

4. Bar Charts

5. Bar Charts Volume: measure urgency behind price moves
Open Interest: number of contracts at the end of each day that are not offset
rises: new money flowing in
falls: money is leaving the market
Prices & Open interest rise: trend will probably continue
Prices rise & Open Int. falls, uptrend is ending
Prices, Open Int., & Volume fall, trend is about to change

6. Market Nicknames Bull = one who expects prices to rise
a rising market
Bear = one who expects prices to fall
a falling market
Prices Volume Open Int Market
Rising Rising Rising Bullish
Rising Falling Falling Bearish
Falling Rising Rising Bearish
Falling Falling Falling Bullish

7. Price Trends General direction which prices are moving
Prices move: up, down or sideways
Sideways Trend: called a trading range
Resistance line (upper level) prices turn down
Support line (lower level) prices turn up

8. Sideways Trend

9. Trends Uptrend: higher highs, higher lows
Draw a line under rising bottoms
Downtrend: lower highs, lower lows
Draw a line under falling tops
Takes two to define a trend, three to confirm it

10. Uptrend

11. Downtrend