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The opposite market condition to normal backwardation is known as contango. Contango refers to "negative basis" where the future price is trading above the expected spot price. [3] Note: In industry parlance backwardation may refer to the situation that futures prices are below the current spot price. [4]
A bull market is generally defined as a period of consistent, overall upticks in the market, whereas a bear market is defined by a sustained decline in the prices of the overall market. Defining ...
The opposite market condition to contango is known as backwardation. "A market is 'in backwardation' when the futures price is below the expected spot price for a particular commodity. This is favorable for investors who have long positions since they want the futures price to rise to the level of the current spot price".
A bear market is essentially the opposite of a bull market, meaning that it is a prolonged period of declining prices. A bear market generally occurs when prices have declined by at least 20 ...
This market situation, where () >, is referred to as normal backwardation. Forward/futures prices converge with the spot price at maturity, as can be seen from the previous relationships by letting T go to 0 (see also basis ); then normal backwardation implies that futures prices for a certain maturity are increasing over time.
A bull market is the opposite of a bear market and occurs when asset prices rise significantly over a long period of time, commonly defined as a 20% or more increase from their most recent low. A ...
The pole is formed by a line which represents the primary trend in the market. The pattern, which could be bullish or bearish, is seen as the market potentially just taking a "breather" after a big move before continuing its primary trend. [3] [4] The chart below illustrates a bull flag. A bear flag would trend in the opposite direction.
The frustrating truth about technical analysis is that it requires interpretation. Ideally, a chart would shout "buy" or "sell" and could only be interpreted one way. But as the saying goes, "If ...