since there was some talk about trading futures over the
weekend, here's some examples, I personally like to trade
divergence, that's my style. Again you should not look for
one pre package style to fit everyone, I like to use these three
indicators on tick charts to note divergences and take
high probability trades. I also use pivot points
and Fibonacci retracements as places to take profits or set stops.
I like to use the MACD Advanced, DPO, JRSX that
are in the BPT store.
Here's some examples that I've posted on the blog in the past.
Again I would love to get all these together one day and do a
write up on a descriptive page, however I have not had the time,
but here's some past examples anyway
Posted by racerick on 29th of Jun 2010 at 07:58 am
I trade futures extensively, especially like to trade between
London open and our open for you night owls. Often less chop and
better trends.
My primary vehicles are the ES, CL- full oil contract, and ZN-10
yr note futures.
I mainly use 5 and 15min charts as well as watching 30min.
I find that my standard indicators 18ema, 50,100 and 200sma
along with an indicator that TOS has called Volume Flow Indicator,
which works as name suggests but also shows divergence as a MACD
does. (Anote for those of you who have TOS, you do not want to
trade against this indicator). I use weekly pivot points in
conjunction with Fib fan lines and Andrews pitchfork as well as
linear regression line. I also constantly monitor Dx chart, as well
as AUD/JPY since often times will lead. Oil and DX inversely
correlated majority of time.
Of all of these, CL(oil) is the most profitable consistently for
a couple of reasons. First because oil tends to trend, though it
can be very volatile short term and 2nd is you can get huge moves
quickly. You normally have to carry a .30-.40 stop which on a
single full contract is $300-$400. But it's not unusual to have
.50-.60 5min candles. On full contract, each point is $1000 so you
can see that it can be volatile. I find that oil reacts real well
to pitchfork levels as seen in charts below.
Also notice that the 100maon the 15min chart, light green moving
average line, is often very useful as a target and a turning
point.
Here is 5min oil chart. I chased the entry a tad, just because
it dropped so quick once it broke the top pitchfork line. The
horizontal red line I covered off of is an earlier top of pitchfork
line from last week
I also find that oil reacts pretty well to the 50ma(blue line)
for indicating change of direction and also for containment. You
want to have a confluence of several other indicators if you're
trading against.
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trading futures
Posted by matt on 29th of Jun 2010 at 12:28 am
since there was some talk about trading futures over the weekend, here's some examples, I personally like to trade divergence, that's my style. Again you should not look for one pre package style to fit everyone, I like to use these three indicators on tick charts to note divergences and take high probability trades. I also use pivot points and Fibonacci retracements as places to take profits or set stops. I like to use the MACD Advanced, DPO, JRSX that are in the BPT store.
Here's some examples that I've posted on the blog in the past. Again I would love to get all these together one day and do a write up on a descriptive page, however I have not had the time, but here's some past examples anyway
http://breakpointtrades.com/blog/uploaded_content/2010-06/0828261001275924261.png
and here's a follow up to it, as you can see, the bounce worked. I like to trade clean divergences which shows up well in these custom BPT indicators
http://breakpointtrades.com/blog/uploaded_content/2010-06/0710238001275927451.png
Here's some other examples:
looked like it wanted to bounce via the indicators positive divergence
http://breakpointtrades.com/blog/uploaded_content/2010-06/0396211001275879052.png
and as you can see, it played out
http://breakpointtrades.com/blog/uploaded_content/2010-06/0397104001275879052.png
Here's another example:
http://breakpointtrades.com/blog/uploaded_content/2010-05/0512225001274923133.png
and here's a follow up, see how those negative divergences work out
http://breakpointtrades.com/blog/uploaded_content/2010-05/0286984001274925934.png
Trading futuures
Posted by racerick on 29th of Jun 2010 at 07:58 am
I trade futures extensively, especially like to trade between London open and our open for you night owls. Often less chop and better trends.
My primary vehicles are the ES, CL- full oil contract, and ZN-10 yr note futures.
I mainly use 5 and 15min charts as well as watching 30min.
I find that my standard indicators 18ema, 50,100 and 200sma along with an indicator that TOS has called Volume Flow Indicator, which works as name suggests but also shows divergence as a MACD does. (Anote for those of you who have TOS, you do not want to trade against this indicator). I use weekly pivot points in conjunction with Fib fan lines and Andrews pitchfork as well as linear regression line. I also constantly monitor Dx chart, as well as AUD/JPY since often times will lead. Oil and DX inversely correlated majority of time.
Of all of these, CL(oil) is the most profitable consistently for a couple of reasons. First because oil tends to trend, though it can be very volatile short term and 2nd is you can get huge moves quickly. You normally have to carry a .30-.40 stop which on a single full contract is $300-$400. But it's not unusual to have .50-.60 5min candles. On full contract, each point is $1000 so you can see that it can be volatile. I find that oil reacts real well to pitchfork levels as seen in charts below.
These are 2 trades taken last nite:
The first is ES
http://screencast.com/t/MmQzM2I0NGMt
Here is an expanded view that you can see Pitchfork lines on going futher back. as you can see pf line I covered against this am goes back over a week
http://screencast.com/t/Yjg4NmQxM
Now here is a 15min chart with fan lines on. Notice once again that these originated a week ago
http://screencast.com/t/ZDhjMjM0OG
Also notice that the 100maon the 15min chart, light green moving average line, is often very useful as a target and a turning point.
Here is 5min oil chart. I chased the entry a tad, just because it dropped so quick once it broke the top pitchfork line. The horizontal red line I covered off of is an earlier top of pitchfork line from last week
http://screencast.com/t/NjgxZGUzZD
I also find that oil reacts pretty well to the 50ma(blue line) for indicating change of direction and also for containment. You want to have a confluence of several other indicators if you're trading against.