Support and Resistance Trading Forum

1900s commodity charts
By:Retired
Date: 6/21/2006, 9:57 pm
In Response To: The History of Coffee (Retired)

One or two of ya'll might be interested in noting how commodities moved during the time of the last industrial revolution.

Things may not repeat themselves precisely every time, but very large trends have an equally large tendency to follow similar patterns.

The trends we've been experiencing in industrial commodities are following the same patterns as similar commodities did in the 1900 years when demand suddenly grew exponentially. If China, India, and the others don't slow down, demand will again grow exponentially. If this happens, industrial commodities are nowhere near done going up. Historically, declines are sharp after runups. There is always one 50% retracement of the entire trend move (sometimes even a second and third deep retracement). The first deep retracement does not test the highs very quickly. It usually ranges upward off recent lows with high volatility that slacks off over a period of weeks and months. Second and third retracements are quicker to test prior highs.

All sorts of interesting things one can pick up from these old charts.

Responses To This Message

Re: 1900s commodity charts
Erich (vendor, CTA) -- 6/25/2006, 1:38 am
ONLINE COMMODITIES TRADING