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There are a number of reasons that many traders favor technical analysis over fundamental. For starters, fundamental traders tend to be commercial firms; that is, they are involved in the actual production or consumption of a commodity. Technical traders tend to be most everyone else – commodity funds and retail speculators.
As a futures trader, have you ever asked yourself any of the following questions? “What looks good and where should I get in?” “Uh-oh… I didn’t expect that… what should I do now?” “Do I want a stop and where should I put it?” “How should I get out?”
This morning, I got a call from a self-directed client. I generally do not offer unsolicited advice for do-it-yourself traders unless they are doing something blatantly dangerous, or if I am sure they are wrong.
Doji bars are one of the single most useful single bar patterns that any trader can identify. They can be used for entries, exits, or to determine position bias. “Doji” is a term used by Japanese candlestick chartists that refer to a bar where the open and close of a bar are in close approximation to each other.
In my opinion, George Douglas Taylor was one of the greatest trading thinkers, and luckily he left behind one book on trading: The Taylor Trading Technique. This book lays out his “Taylor Book Method” for swing trading in futures.