A very popular trading technique is divergence trading.  A divergence is where a futures contract may have a higher price on a second peak, but the indicator may show a lower price.  This described as a Classic Divergence.  We will discuss Hidden Divergences in another post.

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How to Use Pivot Points with Support and Resistance

We have attempted to give you a background in trading.  Overall I learned to trade from Dr. Alexander Elder’s Book and Workbook, “Trading for a Living” back in 1996.  I actually failed the tests in the workbooks several times before I got it right.  I still think that that book is a classic and in a class all by itself. 

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Futures trading is a risky business. The untrained, unwary, unknowledgeable, undisciplined or sometimes plain unlucky can lose a fortune — and in an agonizingly short time. In fact, the SEC requires futures trading websites to post a disclaimer concerning the potential risks involved in trading commodity futures. You’ll find a full disclosure statement on my Futures Trading Secrets website.

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“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.

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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.

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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.

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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.

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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.

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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.

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