Quickly understanding various charting forms and patterns is a valuable skill that futures traders need to cultivate. When the market is jumping, you often have only nanoseconds to make a trading decision. Successful futures traders learn to read and understand their charts at a glance. In the next few posts we’re going to go over some charting basics that are important to futures traders.
Archives for 2007
Why Candlestick Charts Are Useful to Futures Traders
October 29, 2007 By
Futures traders have a vast variety of chart types to choose from. The most used are Western bar charts; and the least used, point and figure charts. Newspapers seem to favor line charts for their easy readability. But many futures traders have found Japanese candlestick charts extremely useful, particularly because they make it possible to determine at a glance whether the bulls or the bears are in control of the market.
Futures Traders Charting Tools: Retracements
October 27, 2007 By
Retracements are a key charting tool used by futures traders to predict price movements and select entry points. The key value in retracements is that they keep the successful futures trader grounded in reality. They provide traders with an objective view of actual market movement. They help futures traders keep their hopes and fears in check and deal with market movement dispassionately.
Determining Correct Entry Point Is Key To Profitable Futures Trades
October 25, 2007 By
Knowing when and how to make your entry point is the key to a profitable trade. Many of the losses you suffer as a futures trader will be directly linked to poorly-timed or ill-placed entry points. Choose your entry point unwisely or time your entry poorly and you can turn a sound trade into a loss. Conversely, doubtful trades can come up winners when entry occurs at the proper point and time. The entry is the most critical part of any trade. The trick is in knowing when to strike.
