This is a sample entry from Don DeBartolo’s email newsletter, Trade Spotlight: Futures, published on Wednesday, June 21, 2017.
There is a trade opportunity as the Dollar Index futures contract found resistance, failing to break through the 97.500 price level. The MACD indicator is flat and the Trend Seeker is down, though with a neutral ranking. The Stochastic indicator is showing strong downside momentum. Selling the contract on a break of yesterday’s trading session low.
Sell the September 2017 Dollar Index at 97.130 using a stop order, GTC.
Initial Margin = $1,980 Maintenance Margin = $1,800
Stop loss: Place buy stop on 97.530, above the resistance level, GTC. (Initial Risk: $400)
Target: Place buy limit on 96.030, above the twelve month contract low, GTC. ($1,100)
September 2017 Dollar Index Chart from Bar Chart
STOP ORDERS DO NOT NECESSARILY LIMIT YOUR LOSS TO THE STOP PRICE BECAUSE STOP ORDERS, IF THE PRICE IS HIT, BECOME MARKET ORDERS AND, DEPENDING ON MARKET CONDITIONS, THE ACTUAL FILL PRICE CAN BE DIFFERENT FROM THE STOP PRICE. IF A MARKET REACHED ITS DAILY PRICE FLUCTUATION LIMIT, A "LIMIT MOVE", IT MAY BE IMPOSSIBLE TO EXECUTE A STOP LOSS ORDER.
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