support and resistance Archives • Futures Day Trading Strategies

Trading Candlestick Patterns As An Afterthought

This article on Trading Candlestick Patterns is the opinion of Optimus Futures.

While candlestick patterns are usually found at the center of many technical trading methodologies as reliable entry triggers or trade management tools, they can also be used in many unconventional ways that traders may not be very familiar with, but are nevertheless very effective.

One such method deals with trading candlestick patterns as they form away from the main source location and trading them as an afterthought to unfolding market action.

Understanding Candlestick Patterns

To get a better grip of the methodology we briefly discussed above, it is first important to understand candlestick patterns and formations from a perspective slightly different to what is usually used when traders initially learn and start using them in their day to day trading.

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How to Trade Sideways Markets Effectively – A Step by Step Guide

The following trading article on How to Trade Sideways Markets is the opinion of Optimus Futures.

One of the most difficult yet inevitable market conditions for traders is the notorious sideways market, which can dent trading performance if traders fail to adjust accordingly.

In this article, we lay out a step by step process to help you tackle a sideways market for potentially better trading results.

Learn to Identify a Sideways Market

The first step might seem intuitive and obvious but is often a point ignored by traders. A sideways market is obviously one where price action will not roll in one definitive direction, (up or down) but run side to side on your screen through short bursts of movements up AND down reflecting major indecision in the market.

A consolidation or

How to Trade Divergence the Right Way!

Spotting and trading divergence is a common practice employed by technical traders, irrespective of the time frame or market. There is a lot of literature around the web sharing the nuances of spotting divergence correctly, including the use of swing points and drawing reference trend lines on the oscillator and price itself for assistance and visual clarity.

But there is clearly more to divergence than just spotting it right. And that truth jumps out at you more than ever when you notice instances where price continues on with the trend while your favorite oscillator indicator continues to print diverging highs or lows, leaving you scratching your head. How exactly do you time your trades to make the most of the divergence?

Let’s take a deeper look to explore how divergence works in the marketplace.

Divergence is an Indication, NOT a Trigger

The first thing we need to understand is that divergence alone is

Three Ways To Determine High Quality Trend Lines

Trend lines are among the most commonly used trading tools used by technical futures traders. Whether you run a trading strategy built entirely upon using and trading off of trend lines, or you use them in a limited capacity to determine your entries (or exits), the need to locate the high-quality ones that aid in trade placement or management is a critical skill for a technical trader to master.

The hunt for quality when it comes to trend lines stems from the fact that they can be drawn to connect essentially any two lows or highs on a chart, but may not always be as useful. Let’s look at three ways you can separate a potentially high-quality trend lines drawn on a chart, versus any random trend line connecting multiple highs or lows.

1) Trend Lines Precision

Precision is a key factor when it comes to the strength of a trend line.

Follow this 7 Step Process to Effectively End Your Trading Day

How do you end your trading day?Do you just close your trading platform and then move on to other things in your life? The following seven 7 tips can potentially help you create a better trading routine and develop the discipline to be prepared for the next trading session.

Step 1: Keep an end-of-day trading checklist

Look back at all your trades and analyze how you approached them. It is important to avoid hindsight bias here and focus on objective criteria like trade entry, breaking vs. following rules, FOMO vs. proper execution and so on. Keep this exercise as short as possible without overwhelming yourself. We recommend taking screenshots. Collecting screenshots of your trades over time can often be an excellent introduction to record-keeping. Used in combination with a checklist, a trader can

Posts Tagged Under: support and resistance

Understanding Candlestick Patterns

Learn to Identify a Sideways Market

Divergence is an Indication, NOT a Trigger

1) Trend Lines Precision

Step 1: Keep an end-of-day trading checklist