support and resistance levels Archives • Futures Day Trading Strategies

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Commodity Futures Market Analysis – March 5th 2018

 

The following Commodity Futures Market Analysis is the opinion of Optimus Futures. Click on the charts below to enlarge it.

S&P 500 Index

Emini S&P 500 index futures market was mostly bearish for the week on comments from the US Federal Reserve Chair Jerome Powell who remarked on the possibility of future interest rates hikes to prevent the US economy from overheating.

S&P Emini Commodity Futures Market Analysis March 5th 2018

The negative comments bode well for the broader range-bound market sentiment that is keeping price tucked well within the wide range identified by the highs around the 2870 level and the critical lows at 2540. Until price attempts to clear one of these two major support and resistance levels, we suspect the sideways market action may likely continue this week, and for

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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.

How to Trade Sideways Markets

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 sideways phase

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The difference between Momentum and Volatility, and how to use it in your trading

 

The misunderstandings and misconceptions between volatility and momentum can lead to expensive trading mistakes and can even result in totally flawed chart and market analysis and trading decisions.

Volatility and momentum are two fundamentally different things and we will explore the differences between the two concepts, how to measure volatility and momentum and how to use them for effective trading decisions.

 

What is volatility?

Volatility describes how much price fluctuates around a mean. If you would use a moving average and see price going back and forth around the moving average, markets are in a high volatility environment. Furthermore, if candlesticks have relatively long candle shadows, compared to the candle body, it also signals a volatile market.

Thus, volatility is also often referred to as a risk indicator because high price fluctuations can signal indecision in the markets and the powers between buyers and sellers are constantly shifting.

 

What is momentum?

To a certain degree, momentum

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