AGEC 420, Lec 311 Agec 420 Markets TradeSim Technical Analysis

AGEC 420, Lec 312 Corn Market Bot 1 MidAm Dec 2.29¼, March 6 Close $ +/- Tu., Apr ¾ -$65.00 CBOT:

AGEC 420, Lec 313 Cattle Market April 3; buy 1 MidAm April NOT FILLED Close Change Apr Apr Apr Apr Apr Apr. 10 (11:30am) Cattle:

AGEC 420, Lec 314 Technical Analysis 2 main types 1. Charting –Bar charts are the most common –Others – Japanese candlestick –Elliot wave theory 2. Indices –Moving averages –Relative strength index

AGEC 420, Lec 315 The Bar Chart Axes show price and time Vertical bars –price range (day or week) top of the bar --> highest price bottom --> lowest price tick on RHS: closing price

AGEC 420, Lec 316 Charts Two basic “categories” of chart patterns 1. Trends and trend reversals Rationale: bandwagon effects, gradual release of information

AGEC 420, Lec 317 Charts “Categories” of chart patterns (cont.) 2. Resistance and support planes and associated topping and bottoming patterns Rationale: “investors memory” sell when it gets back to the price they bought at buy when it gets down to where they wish they had bought

AGEC 420, Lec 318 Charts Trends and reversals

AGEC 420, Lec 319 Downtrend and reversal Downtrend: Downward sloping line drawn above prices, connecting the highs. Close above a downtrend --> buy signal

Close above a downtrend

Close above downtrend

Close above a downtrend

AGEC 420, Lec 3113 Uptrend and reversal Uptrend: Upward sloping line drawn underneath prices, connecting the lows. Close below an uptrend --> sell signal

Close below an uptrend

AGEC 420, Lec 3117 Charts Resistance and support planes Topping and bottoming patterns

AGEC 420, Lec 3118 Tops and Bottoms Double top (bottom) Head and Shoulders (top or bottom) Illustrate on blackboard