One of the most popular, important and “easy to use” #technical indicators is the Simple Moving Average (SMA). This simple indicator can be used to tell you several things about the #coffeemarket, however, it has one very important and primary purpose: a simple moving average allows traders to define and identify the trend. In this article, we will first cover why it is so popular, then we will define what the moving average is, what the logic is and how one can use it when

Last week's #COT contained a curious fact: during the rally up above 200 cents the #specs actually sold rather than bought. This is contrary to what we might expect and it confirms the possibility that the lows in this #coffeemarket will be much higher than previously thought. In the paragraphs that follow, I will provide the framework that I'm using to make this claim and then I will walk you through my logic. Please feel free to fact check me! For those unfamiliar with th

With #technicalanalysis for #commoditymarkets, the key is to ask yourself is there a logical, #psychological phenomenon ? With #coffee this week we are seeing two classic examples of "continuation patterns". #Continuationpatterns are typically a consolidation before the #trend continues in the same direction. The logic and psychology behind #consolidation is pretty straightforward. Whenever there is a big move in one direction (the #trend), the appetite for buying or sellin