Chart Patterns. Bar charts are price charts that show the daily futures price opening, high, low, and closing using a vertical bar with ticks on it (see box above). Bar charts are used in technical analysis to analyze and predict the trend of prices. This is accomplished in a variety of ways, including a host of characteristic formations or patterns (e.g., “head and shoulders”, double top or bottom, flags, triangles, etc.). In general, there is no research to show that these chart patterns determine prices or even reliably predict cotton prices. But many cotton market participants pay attention to them, and to the extent that traders act on them, chart patterns could occasionally be influential, in the manner of a near term, self-fulfilling prophecy.
Welcome to the educational website of Dr. John Robinson in the Department of Agricultural Economics at Texas A&M University.
The website focuses on farm-level implementation of strategies for Texas cotton growers to deal with yield and price risk. Contact me to receive a weekly e-mail notice of when the latest edition is posted on-line. In addition, we provide daily crop market news and commentary on Twitter (@aggie_prof) and also on the Master Marketer facebook page. We welcome your feedback and interaction in these social media.