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6 tips for selling rallies

Price charts offer clues but not silver bullet.

Bryce Knorr 1

June 2, 2016

1 Min Read

Selling rallies isn’t easy. That’s why traders keep searching for a system to ensure profits.

Many turn to price charts for clues – so called technical analysis, which uses futures price patterns to guide buying and selling decisions. We looked at six of these signals, tracking how they performed against the harvest December futures price. Also included in this analysis are sales made after improvements in weekly ratings put out Monday’s in the Crop Progress report from USDA.

These are all hypothetical results, not the gains or losses from actual trades. Some academic experts believe it’s impossible to “time” the markets. They say any gains from such systems are the mere result of chance. Our study found gains too small for some of the systems to be statistically significant. And all of the signals some years netted prices that were much smaller than the harvest price.

This video explains the signals, which can help you understand why markets are moving – and perhaps, when to consider making sales. We also provided year-by-year results to show how the plans worked, or didn’t.



About the Author(s)

Bryce Knorr 1

Senior Market Analyst, Farm Futures

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