Put Down Your Remotes And Pick Up Your Charts

A Study: Technical Analysis Applied to Trading Sports Futures Contracts

New York, NY -- (PRWEB) September 15, 2003 -- Cytrader.com -- Its been said that the chart pattern of a publicly traded security can predict the future direction of that securitys price. Can that same philosophy be applied to chart formations created from Sports futures contracts? Theres the Double Top, the Double Bottom, the Head and Shoulders, and the infamous Cup-n-Handle, just to name a few classic chart formations. Each of these formations can occasionally be found in the chart of a Sports futures contract. And yes, these formations, when discovered, can predict the movement of a contracts price, which in turn can be used to predict the future outcome of a baseball or a football game. As the saying goes, the proof is in the pudding.

By studying past chart data from Sports futures contracts, one can clearly see how popular chart formations, once formed, have played out exactly as a technical analyst would predict. On September 11, 2003, the Chicago White Sox played the Minnesota Twins and lost by a score of 5-2. If you were not watching the game on TV and only studied the chart of the game, you would have known that the Sox had lost their way early in the game. Based on the chart formation plotted by Cyclops (see chart images), using price data supplied by the World Sports Exchange and the Tradesports Trading Exchange, the game was over for the Sox after 30-minutes of play, and traders could have capitalized on this by short-selling the contract at $30 and buying it back after a $20 to $25/contract profit. As many technical analysts point out, when a massive sell off occurs, causing the chart data line to drop dramatically, and then a flat data line follows, this indicates that a continued sell off in price will follow, as demonstrated in these charts.

A second example of when technical formations could have been used as a predictive price indicator occurred during the California vs. Utah NCAA College Football match-up the night of September 11th at 7:30PM. Cyclops charted the game, showing multiple Double Tops at a clear resistance level of $80 a contract. Late in the game, the chart then displayed what can only be described as the perfect Double Bottom (see chart image). As noted by technical analysts, the Double Bottom is a strong indicator of an imminent price breakout, and the chart supports this premise.

The two examples described above occurred on the same day, which shows that there are technical chart formations developing each day for any number of Sports futures contracts. Clearly, applying technical analysis plays an important roll in predicting the future contract price and outcome of a sporting event.

###

About Cytrader.com

Cytrader.com is the premiere information service provider for Sports, Political, and Special Events Futures Contracts. Cytraders Cyclops product line delivers real-time information to Sports, Political, and Special Event Futures Traders for a fixed monthly fee.

Note to Editors: Cyclops is a trademark of Fountainhead Ent. LLC. All other product and company names mentioned herein may be the trademarks of their respective owners.