I have opened a bull spread in cocoa. Despite the spread being low-risk, my position isn’t large for several reasons. Let’s comb through the charts. I always begin with the Commitments of Traders analysis. It’s like a screening filter which tells me whether the opportunity is worth my time. The COT is clear in cocoa…

Ratio charts can show us many interesting things. They can reveal supports and resistances where’s a high probability of turnover. One such interesting situation can now be seen in the cocoa/sugar ratio. Take a look at the following chart. It’s clear that the ratio responds to support on the red line. The last time it…