CBOT Wheat trades at a Historically Important level

[wheatking16]

The monthly CBOT Wheat chart is testing the highs of 1974 and 1976.

We consider this an important price level representing possible support ranging from 4.00 to 5.75.

Price has a memory with levels from 50- years ago impacting today.



More details are discussed in yesterday's video.

[poorboy]

Are the numbers inflation adjusted when compared to years ago or how to compare?

[wheatking16]

The numbers are nominal.

IMO, discussions of real (inflation-adjusted) prices are only good for headlines, talking points, beer parlour discussions and little else.

The market does not consider inflation-adjusted numbers as they are nonconsequential.

[furrowtickler]

Thank you for sharing wheatking
much appreciated

[AlbertaFarmer5]

Have you tried charting an equity or commodity against gold , or against the price of a big Mac(both considered to be a true measure of inflation by some)?

Would the same indicators have any utility?

If TA is strictly quantifying human emotions, then those relationships shouldn't be tradable using charts.

If TA still works, then there is some more fundamental pattern behind price.

[wheatking16]

I do. I have a large number of charts against gold, not the Big Mac Index, though, including the following:

• BTC vs Gold,
• BTC vs Wheat
• DJI vs Gold
• Gold vs Commodity Index

Today's video touches on this post,

Yes, I believe 100% that the same indicators have utility, and all assets trend relative to one another, with common signals suggesting when to switch.


Now, TA is more of an art than a science, with various levels of effectiveness due to abilities and one's current mental state. (Emotions affect outcomes)

I disagree that TA strictly quantifies human emotions.

This definition resonates with me:

"Technical analysis, a method used to evaluate and predict price movements in the financial markets, is deeply intertwined with human psychology."

This video from May 29 might be interesting as well.

Regarding your comment," If TA still works, then there is some more fundamental pattern behind price."

The Fibonacci Sequence, for example, is observed in the Milky Way and nature and is an effective TA tool.

Yes, the 61.8% retracement can be found in ratio charts comparing commodities to gold, which few use as a criterion for investment decisions.


As I age, more experiences appear to be orchestrated, and things and people appear timely, almost on cue.

Perhaps there is a higher power?

Perhaps we are subjects of an experiment conducted while the earth is in the Goldilocks Zone.

I don't know the answers to these questions, much like I cannot answer why the same Fibonacci spiral is found in both the Milky Way and a snail or why the market pivots at predictable levels.

But I know they do.

[biglentil]

Goldilocks zone, heliocentric model now there is a wopper of a fish story.