Market traders commonly use chart patterns to identify positive-expectation trading opportunities. When used in conjunction with other indicators, such as support and resistance levels, chart patterns can be powerful tools for generating profits. No matter whether you favor an open-high-low-close (OHLC) or candlestick format, understanding how to use chart patterns for day trading is valuable.… Read more.
Futures Trading
Bollinger Band Futures Trading Strategies
Created by market technician John Bollinger in the 1980s, Bollinger Bands (BBs) are a favored indicator for many traders worldwide. According to Bollinger, BBs are intended to answer one simple question: Are prices high or low on a relative basis? To address this inquiry, Bollinger Bands view volatility as being dynamic. Thus, they’re designed to… Read more.
Trading the S&P 500 200-Day Moving Averages
The moving average is one of the most popular technical indicators among futures traders. Moving averages come in many forms, including exponential, smoothed, and simple. For anyone interested in becoming better acquainted with these powerful tools, focusing on the 20-, 50-, 100-, and 200-day period simple moving averages is a great place to begin. In… Read more.
How Does Liquidity Impact the Futures Markets?
Futures market liquidity is an important topic that’s easy to overlook. However, if you’re going to prosper as an active trader, then understanding the concepts of market depth and order flow is critical. Let’s take a closer look at the leading factors that affect futures liquidity.
Catching Knives: Tips for Successful Counter-Trend Trading
According to Merriam-Webster’s dictionary, a trend is a “prevailing tendency or inclination.” As it pertains to active trading, a trend is a directional move in evolving price action. Generally speaking, there are two ways in which a market may trend: bullish (up) or bearish (down).
Learn How to Leverage DJIA Futures Charts
Alongside the Standard & Poor’s 500 (S&P 500) and NASDAQ Composite (NASDAQ) equities indices, the Dow Jones Industrial Average (DJIA, DOW) is a leading barometer of U.S. economic performance. Subsequently, DJIA futures charts are some of the most widely referenced market technicals in the world.
How to Overcome Analysis Paralysis Within Your Trading Strategy
In the arena of active futures trading, technical analysis is king. It’s certainly a popular and viable trading methodology, but the discipline has one major pitfall: analysis paralysis. In this blog article, we’ll break down this concept and give you a few tips on how to overcome analysis paralysis.
How to Start a Career in Commodity Trading
The world’s commodity markets are exciting arenas specializing in the trade of earthborn raw materials. However, be aware: Commodity trading can be a full-contact sport in which only the fast, smart, and bold survive.
Trading Floor Hand Signals: The Sign Language of Futures Trading
For decades, the world’s futures markets have been hotbeds of innovation. From the launch of countless derivatives products to the development of cutting-edge technologies, the goal has always been the same: to provide value and efficiency to the trader.
Learn How to Day Trade
For most professions, on-the-job training (OJT) is a key part of the developmental process. Although this is certainly true for futures day traders, OJT can be expensive. Whether paying to attend seminars or losing money via trial and error, expanding your knowledge base in the live market is typically capital-intensive.