moving average Archives • Futures Day Trading Strategies

Posts Tagged Under: moving average

Stop Trading the P&L! Establishing a Proper Trade Exit Strategy

 

Read the Chart and do not Trade your P & L

The reason many traders fail when it comes to exiting trades is because they focus solely on the money they can potentially lose or win instead of making market-related decisions. This is also called “trading your P&L,” where traders completely detach themselves from their charts and market context and respond only to their account balance and the unrealized profits on their futures trading platform. (P & L stands for Profit and Loss)

Improving Profit Taking & Exiting Trades

Profit-taking or loss, or exiting trades in general, is arguably more important than entry timing because how you exit your trades determines the long-term outcome of your P&L. However, most traders don’t spend much time on developing their trade exit strategies and are often uncertain of even how to exit. This results in emotional trade management driven by impulsive decisions with no clear plan.

Read More


5 Indicators and Tools to find Trend Strength and Direction

 

Being able to read charts, and trend structure in particular, is an important trading skill that can help traders better understand market moves and enable them to apply their trading method in the right situation. No system works all the time and knowing how to differentiate between trends and consolidations is an important aspect of trading. In this article, we introduce 5 different ways traders can make sense of charts and which indicators to use to understand price structure correctly.

Classic Dow Theory – Highs and lows

Many traders feel lost when looking at pure (naked) price charts but the analysis of highs and lows, in the sense of the Dow Theory, can already tell you a lot about the market you are looking at.

It all starts with the classic definition that a bullish trend exists when you see ‘higher highs and higher lows’. A range is, thus, defined by price

Read More


The 8 point checklist to start your trading day like a professional

 

Preparing for your trading day is a must for the serious trader. If you know what to expect for the day ahead, you can make much better trading decisions, avoid surprises and you are less likely to miss trades. The following 8 points will give you a head-start and allow you to approach your trading from a completely new perspective. We will also go over why each point is so critical:

 

#1 Higher time-frame analysis

A short glimpse at the weekly or daily time-frame is a must before you start your trading day. It helps put everything into perspective; you can get a feeling for where you are in the overall trend and you see immediately if any important obstacles or price levels are coming up.

 

#2 Support and Resistance

In addition to marking important price levels from the higher time-frames, knowing where to expect intra-day support and resistance is important too. Even

Read More


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 |

Read More