Liv-ex members can access the Technical Analysis Tool; a data visualisation tool that allows wine businesses to examine past wine prices to try to forecast future movements, and increase the likelihood of making more profitable trading decisions. While such analysis offers no guarantees, it can provide reliable pointers towards the likely direction and timing of future price changes.
Technical Analysis also has interactive drawing tools, allowing you to draw, annotate and customise the chart – to forecast movements with even greater confidence
What is technical analysis?
Technical analysis is a discipline for predicting the future direction of financial market prices based on historical data. It can be applied to all liquid markets, including fine wine. For a deep-dive into Technical Analysis, you can read our blog post “How to predict future wine prices”.
How can I use the Liv-ex Technical Analysis Tool?
Members can perform Technical Analysis on wines (LWIN11s) and Liv-ex indices, using four different financial indicators:
- Fibonacci Retracements
Predict the likely end of a pullback and identify a possible target level at which to take a trading position. - Bollinger Bands
Establish how volatile prices are at present, and recognise both trend continuations and reversals. - Simple Moving Average (SMA)
Indicates whether a price is likely to continue or reverse a bull or bear trend. - Relative Strength Index (RSI)
Measures the magnitude of directional movement, based on average gains or losses over a given period.
These can be applied separately or used together. You can also download the charts you create and show them to clients.