Futures contracts enable traders and investors to
profit from price movements and provide market liquidity through their trades without ever possessing the actual commodity being traded.
All indicators are
derived from price movement anyways, so if we have a solid method to trade based only on price movement (price action analysis), it only makes sense that we would use that instead of trying to analyze messy secondary data.
All indicators are derived
from price movement anyways, so if we have a solid method to trade based only on price movement (price action analysis), it only makes sense that we would use that instead of trying to analyze messy secondary data.
The main use of these methods is to predict future market prices, or more generally, potential market prices, and thus to profit
from price movement — stocks that are judged undervalued (with respect to their theoretical value) are bought, while stocks that are judged overvalued are sold, in the expectation that undervalued stocks will overall rise in value, while overvalued stocks will generally decrease in value.