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| I got accused in a post below of being a "chart guru", whatever that is.
I learned about charting in marketing courses in college, and have watched some traders and farmers since who use them. Over time, I've gotten more confident in some of the chart formations, although you still get skunked quite often.
Mainly, I use them to identify trends. If I see a crop that's in a definate uptrend, like corn, and it hits my price to sell, I'll look at the chart, and if it looks like it's running, I'll probably let it go. Or, if the chart looks toppy, or sideways, I'll probably go ahead and sell. I rarely sell on an up day. I rarely sell on an uptrending market, normally sell after a small reversal.
Wheat, on the other hand, looks to have made a key reversal in the new crop. I sold 12 cents off the nearest high a small portion of my crop. It's off another 30 since then. Old crop looks set to run some more. Doesn't matter to me at this point. I should say, though, that I'm never very confident of the short term signals. Key reversals, etc, etc, can turn around in a couple days or a week, or tommorrow.
Crude, I pointed out, is trying to make a classic head and shoulders top. Will this be the top for a while? Will it run on up again? I don't know, but I'd hate to be long in that market for a little while. Gives me a little hope for the spring.
There are always down days on the way up, and up days on the way down, and dips and dives, but these are a few things I kinda watch for. Don't get to heavy into stochastics, or RSI's, or Elliot waves, although I know there are some who are.
Just wondering what others do, or what I'm doing wrong.
Edited by Pofarmer 12/16/2007 12:21
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How do you guys use charts?
