Momentum indicators are widely used technical indicators which help to measure the pace at which the price of specific equity, such as Cotton, fluctuates. Many momentum indicators also complement each other and can be helpful when the market is rising or falling as compared to Cotton
Cotton
Cotton's Momentum analyses are specifically helpful, as they help investors time the market using mark points where the market can reverse. The reversal spots are usually identified through divergence between price movement and momentum.
Cotton 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Cotton's commodity what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Cotton.
0.00
10/29/2025
No Change 0.00
0.0
In 3 months and 1 day
01/27/2026
0.00
If you would invest 0.00 in Cotton on October 29, 2025 and sell it all today you would earn a total of 0.00 from holding Cotton or generate 0.0% return on investment in Cotton over 90 days.
Cotton Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Cotton's commodity current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Cotton upside and downside potential and time the market with a certain degree of confidence.
Today, many novice investors tend to focus exclusively on investment returns with little concern for Cotton's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Cotton's standard deviation. In reality, there are many statistical measures that can use Cotton historical prices to predict the future Cotton's volatility.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Cotton's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Cotton secures Sharpe Ratio (or Efficiency) of -0.094, which signifies that the commodity had a -0.094 % return per unit of risk over the last 3 months. Cotton exposes twenty-four different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Cotton's Standard Deviation of 0.802, risk adjusted performance of (0.01), and Mean Deviation of 0.5687 to double-check the risk estimate we provide. The commodity shows a Beta (market volatility) of 0.17, which signifies not very significant fluctuations relative to the market. As returns on the market increase, Cotton's returns are expected to increase less than the market. However, during the bear market, the loss of holding Cotton is expected to be smaller as well.
Auto-correlation
-0.4
Poor reverse predictability
Cotton has poor reverse predictability. Overlapping area represents the amount of predictability between Cotton time series from 29th of October 2025 to 13th of December 2025 and 13th of December 2025 to 27th of January 2026. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Cotton price movement. The serial correlation of -0.4 indicates that just about 40.0% of current Cotton price fluctuation can be explain by its past prices.
Correlation Coefficient
-0.4
Spearman Rank Test
0.01
Residual Average
0.0
Price Variance
0.31
Cotton technical commodity analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, commodity market cycles, or different charting patterns.
A focus of Cotton technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Cotton trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...
Cotton January 27, 2026 Technical Indicators
Most technical analysis of Cotton help investors determine whether a current trend will continue and, if not, when it will shift. We provide a combination of tools to recognize potential entry and exit points for Cotton from various momentum indicators to cycle indicators. When you analyze Cotton charts, please remember that the event formation may indicate an entry point for a short seller, and look at different other indicators across different periods to confirm that a breakdown or reversion is likely to occur.
Traders often use several different daily volumes and price technical indicators to supplement a more traditional technical analysis when analyzing securities such as Cotton stock. With literally thousands of different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.