What Does a Commodity Chart Display?


Quick Answer

Commodity charts display how a commodity’s price is interacting with users, buyers and sellers. It gathers everything concerning a commodity from prices to trends to future projections.

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Full Answer

A company creates commodity charts either manually or through software available on the Internet. The charts can reflect past, present and future trends of the commodity in terms of user satisfaction. A past commodity chart reflects on information that has been collected over time. Present commodity charts show information that currently is collected. Future commodity charts are a projection of a long term or short-term goal that the company seeks to achieve with respect to satisfying its users.

Companies update the charts constantly during trading hours or during each market day in the case of daily commodity charts. Others are weekly and some monthly. The charts reflect information on different types of commodities. Commodities can be cash commodities or actual materials such as gold, copper, among others.

Creating a future chart requires the buyers and sellers to project future prices that both the parties can agree on so that information placed on the charts is unbiased. This information is accessible to the public thus requires transparency. These future commodity charts track price changes and speculative traders make profit or lose depending on how the price fluctuates in the period stated in the charts.

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