Online Futures Trading Archives • Page 58 of 69 • Futures Day Trading Strategies

Posts in Category: online futures trading

Price Action. Can chart formations provide precise or almost precise entries and exits?

 

Price action is such a popular trading concept because of its simplicity. When it comes to applying price action to charts and making trading decisions based on price formations, there are a handful of principles that can help you make more sophisticated calls and avoid some of the most common pitfalls.

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Chart formations vs. Candlesticks

First, we have to be clear what price action and price formations are. Chart formations are made up of many candlesticks or price bars and form certain patterns. On the other hand, candlestick price action traders only focus on a very limited amount of candlesticks to form an opinion – usually not more than 3 candlesticks at a time.

It is important to understand the connection here; an inside bar candlestick formation is made up of a larger candlestick followed by a smaller

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5 Reasons to Use Moving Averages in Your Trading

 

Moving averages are among the most popular and widely used technical tools in trading. Here are 5 reasons why moving averages add a lot of value to your trading and help you make sense of your charts.

1: Direction of the trend and reading market sentiment

This is probably the most common use for moving averages. When the moving average is pointing up and price is above the moving average, it indicates an uptrend – and vice versa. Furthermore, moving averages can be used to gauge overall market sentiment. When the majority of stocks are trading above their moving average, it signals a healthy and bullish environment.

The 4 most commonly used moving averages are:

200 Period Moving Average | Very long term moving average and even the financial media and authoritative finance sites frequently talk about prices approaching the 200 period moving average.

100 Moving Average | Medium term moving average.

50 Moving Average |

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Rithmic Data Feed and Software: Review and Interview

 

Optimus Futures has been working closely with Rithmic for almost 6 years and was the first futures brokerage to integrate their datafeed into paper trading environments for Sierra Chart, Multicharts, MarketDelta and many other trading platforms. Traders clearly felt the difference in the quality of data and execution provided by Rithmic. So Matt Zimberg, CEO of Optimus Futures, invited Jonathan Walden, the CEO of Rithmic for a brief interview to discuss the role technology plays in today’s futures trading environment and how he envisions Rithmic’s datafeed to help self-directed traders achieve better execution.

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Matt: Hello Jonathan. Thank you for taking the time to do this interview with Optimus Futures.  You have built one of the fastest ways to execute trades via the futures market, so we wanted to pick your brains on a number of things. What

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What is Mean Reversion Trading?

 

Mean reversion trading is also known as trading reversals or as trading V-Tops and V-Bottoms. At its core, mean reversion traders look for strong price movements and then try to identify when those prices are likely to reverse. The screenshot below shows a GoldEuro chart with a very strong bullish move and the green line is the 50 period moving average. By definition, the price will eventually meet again with the moving average.

Price Reversal Mean Reversion

However, there are three main problems mean reversion traders face:

1) Strong price movements can go on for a very long time and a reversal may not occur for a long period

2) Instead of price reversing and meeting the moving average again, often price just consolidates after a strong move and the moving catches up with price

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What does it really take to have a trading edge?

 

What does really it take to have a trading edge? The word ‘edge’ gets thrown around a lot on the internet but most traders have a wrong understanding of what an edge in trading really is and how trading with an edge can be achieved.  This article explains what an edge is, how traders can quantify if they have an edge and it shows what it takes to build one.

What is an edge? The dictionary defines the term edge as follow: A margin of superiority; an advantage. In terms of trading, this means that you have a way to identify trading opportunities that will provide you with a positive outcome over the long-term. A trader who has an edge has developed a method  to trade the markets in a way to come out ahead. Having an edge does not mean that you will only have winning trades, but that your winning

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