“Back up and look at the big picture.” That’s good advice for futures traders. Moving averages help us sort through sometimes chaotic price variations to see what is really happening in the market. Moving averages allow us to see the forest through the trees. By stripping away price volatility by removing both unusually high and low price variations from consideration, moving averages show us the actual underlying trend. (more…)

Moving averages are one of the oldest trading tools. Futures traders use moving averages to reveal the underlying trend behind short-term price variations. Moving averages are a valuable indicator that can be used with other indicators to trigger buy signals. (more…)

Popularized by legendary futures trader George Lane, the stochastic oscillator (commonly called stochastics) is a timing indicator widely used by futures traders to indicate overbought or  oversold positions. Stochastics compares closing price to price range over a specified time period. The driving principle can be summarized as follows: (more…)

In recent posts, we’ve been reviewing essential charting basics for futures traders. Futures traders must have the ability to make decisions quickly. Effective charts provide the futures trader with the information — the trading signals — he needs to make those decisions. It is important for futures traders to be able to read and understand charts at a glance. Particularly when market volatility is high, as it has been recently, futures traders must be able to interpret chart information, read trading signals and act instantly. Savvy futures traders will hone their chart-reading ability in order to take advantage of the valuable trading signals they provide. (more…)

Continuing our blog series on charting basics, today we talk about tails. It is essential for futures traders to be able to read and understand various charting forms and patterns at a glance. The ability to instantly decipher charting information is one of the hallmarks of a successful futures trader. When the market is moving, futures traders must have the ability to make split-second decisions. Successful futures traders learn to read and understand their charts at a glance. In this continuing series, we are explaining charting basics that are important to futures traders. (more…)

We’ve started a blog series on charting basics. Quickly understanding various charting forms and patterns is one of the most valuable skills for futures traders to develop. When you’re trading, you need to be able to decipher as much information from your charts as quickly as possible before you make your trade. If the market is as volatile as it’s been lately, you may have only fractions of a second to make your decision. Successful futures traders learn to read and understand their charts at a glance. In this continuing series, we’ll be covering charting basics that are important to futures traders. (more…)

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. (more…)

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. (more…)

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. (more…)

You can profit in futures trading when you understand what the spread is and how to make it work for you. An arbitrage technique, the spread is the purchase of one futures contract and the simultaneous sale of a different but related futures contract. The goal of the futures trader is to make money on the change in the price difference between the two contracts. (more…)