In contrast, technicians use indicators and chart patterns to
predict future price moves.
Not exact matches
This is a very important issue and it depends on the type of the flat pattern that the market is creating and it can be used for
predicting the next leg, the next
move the market is going to make as well as to
predict the
future price action.
Generally you should focus mostly on your
predicted future spot
price as the
future will
move generally with it (especially and ETF which can have many
futures).
Futures traders are traditionally placed in one of two groups: hedgers, who have an interest in the underlying asset (which could include an intangible such as an index or interest rate) and are seeking to hedge out the risk of
price changes; and speculators, who seek to make a profit by
predicting market
moves and opening a derivative contract related to the asset «on paper», while they have no practical use for or intent to actually take or make delivery of the underlying asset.
However,
futures contracts also offer opportunities for speculation in that a trader who
predicts that the
price of an asset will
move in a particular direction can contract to buy or sell it in the
future at a
price which (if the prediction is correct) will yield a profit.