A futures market refers to an auction market in which participants are engaged in buying and selling commodity or future contracts for delivery on a specified date. These markets generally see higher volumes when the stock market outlook is uncertain. Now that we have established what these markets are, it is time to find out how Barchart can help you in trading in these markets.

Barchart includes a Futures Momentum page, which includes a list of the strongest contracts. Though momentum has been examined very widely in equity markets, not a lot is mentioned about momentum in this market. In a paper about momentum in this area, Craig Pirrong of the University of Houston noted that these momentum portfolios earn positive average returns even after adjusting for risk employing CAPM and the Fama-French three factor models.

On Barchart’s futures Momentum page, the contracts are ranked by weighted alpha over the past year. The page also includes four standard views: Chart view, main view, technical view, and performance view.

The momentum is initially displayed on the chart view, which displays a graph. On the chart, bullish momentum is represented by green bars, while bearish momentum is represented by red bars. There is also the main view that includes name, contract, weighted alpha, last price, change, high, low, and the last trade. The technical view consists of the 20-Day Relative Strength, 20-Day Historic Volatility, 20-Day Average Volume, and the futures and Low.

With Barchart.com’s weighted alpha indicator, traders can spot commodities that have built strong momentum over the past year and which may continue to build momentum. This is an excellent tool for traders, who are looking to bet on price movements in the markets.

Alpha measures how much a contract has risen or fallen over a year period. Barchart assigns more weight to recent activity and less to activity at the start of the period. Therefore the weighted alpha measures a year’s growth with more stress on recent price activity.

There is an indicator page that shows each future contract’s overall opinion, which is the combination of all 13 technical indicators. It also includes its combined short, medium, and long-term opinions for the time period selected on the summary page.

On the detailed indicator page, traders can choose from three standard views: main view, technical view, and performance view. These pages include opinions, volatility, averages, and performance charts. To view one of these helpful charts, become a member today at www.barchart.com.

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