Commodity Price Charts

In Commodity trading there are four basic price charts used daily for trading commodities charts; The Line Charts, The Bar Charts, The Candle Stick Charts and the Point and Figure Charts.

Commodities line charts is one of easiest charts to read and make. Line charts are formed by interconnecting price points of a certain product over a period of time.

The price points in this charts usually refers to the closing point of a certain site.

Most investors gives out more importance to the closing point of sale price, be it high or low. This is done because this kind of observation gives less importance to intraday swings.

The Bar chart is one of the most used commodities charts. The price points that are required in this field are the high, low and close points for each period of a bar chart.

The high and low are represented by the start and the end of a chart and the closing point is represented by the horizontal line that breaks in the vertical closing and opening points.

Bar charts can also be done by using four entities, the open, close, high and low price points. The only difference is that in this kind of bar chart two horizontal lines will be visible on the vertical price point. This two horizontal line will represent the opening and closing of futures commodities trading prices.

The next chart that is widely used in commodities trading is the candlestick chart which originated in Japan some 300 years ago.

For this kind of trading commodities chart the trader will need the open, high, low and close of a certain price point. A candlestick chart is based on daily price or intraday prices, but on certain instances a weekly candlestick chart can be made making Monday as its starting point and closes out on Friday.

The last chart is the point and figure chart. This chart is solely based on price movements and does not take time into its chart entity unlike the previous charts we had discussed. But the x-axis is still present in the chart but it does not pertain that much of an importance compared to the other charts.

There are numerous charts in the market right now and each has its own unique representation of prices. So one piece of advice is to not stick to just one chart for analysis, other charts may give you the answers that you need. Experiment with other charts and you will see the differences that it has.