Appendix X

Information to monitor and interpret while following the evolution of the cocoa market

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Main tools used by market analysts to assess price direction of the market, commonly called technical analysis.

Moving Averages (MA)

A Moving Average shows the average value of a commodity over time. The settlement price is normally used and the average calculated over a period – usually 10 or 20 days. The calculation can be either simple, e.g. the previous 10 days’ settlement prices divided by 10, or exponential. An Exponential MA (EMA) places ...

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