There are procedures to follow when trading commodities. Computerized programs or the commodity trading systems are responsible for giving signals to the members when to sell or buy commodity futures or options contracts. The system produces the signals basing from mathematical formulas typically based from the trading data including prices and trading volumes involve in the technical analysis.
Trading systems that are based from technical analysis are attempting to predict the price movements in the future basing on price trends, price relationships and historical prices.
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Friday, December 21, 2007
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