trend Archives • Futures Day Trading Strategies

Posts Tagged Under: trend

How to use price action to exit your trades

 

When it comes to exiting trades, some traders may have room for improvement in their approach and strategy. In this article we highlight some simple, yet often overlooked, price action principles that can help you understand when a trend is over and likely to reverse.

 

Exiting Trades using Wicks – Candlestick Rejections

Wicks after a long trending phase may point out that the trend is losing strength. In the screenshot below you can see how multiple wicks to the downside after the strong sell-off foreshadowed the bullish reversal.

The wicks show that sellers tried to move price lower to continue the downtrend, but sellers didn’t have enough power and buyers stepped it to absorb all sell orders and keep price up. Finally, sellers gave up completely and buyers moved price higher.

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How to navigate through drawdowns like a professional

 

The cardinal sin of trading is changing a trading method as soon as you run into your first losing streak. Many traders get easily frustrated and demotivated when they encounter a string of losses. Even though this is a natural behavior, behaving correctly in times of adversity is important for your longevity as a trader. The points in this article will help you deal with losing streaks more effectively along with tips to help you navigate through drawdowns like a professional.

 

Is your method really broken? 

This is the starting point during every losing streak. First, you have to rule out the possibility that it is you who is causing the losses. More often than not, it’s not your trading method that is to blame and the trader is the weakest link. Thus, we recommend going over your most recent performance and take the time to audit your trades. Take a look

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Trend Exhaustion in Futures Trading – Why The Last Part Of A Trend Is The Most Dangerous

 

This article on futures trading trend exhaustion is the opinion of Optimus Futures.

Everyone knows that financial markets move in waves. But how can you, as a trader, profit from such well-known price behavior? The Dow theory and the Elliot Wave theory are very well respected because they describe the fundamental nature of how people interact in the financial markets and how they drive prices.

However, when it comes to making actual trading decisions, you have to be able to translate theoretical concepts into actionable ideas. That’s where this article comes in. We will now show you how to identify trend exhaustion by combining commonly used trading knowledge.

Market phases and trend waves

Before we get started, let us come back to the core basics of financial market theory. The Dow theory and the Elliot wave theory are ideal when it comes to identifying trend exhaustion.

Dow Theory

The Dow theory is based upon the

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How to use Fibonacci extensions as profit targets for your trades

 

The Fibonacci tool is a very commonly used tool among traders, but one of the greatest functions of the Fibonacci tool is often neglected. Whereas most traders use the Fibonacci retracements to determine entries – which can be tricky because it is always unclear which Fibonacci level price will adhere to – the Fibonacci extensions are much less subjective. With the help of the Fibonacci extensions, identifying potential profit targets becomes very simple and it takes out a lot of guesswork.

What are Fibonacci extensions?

Whereas most traders only know about the regular Fibonacci retracement levels (0.382, 0.618 and 0.764), the Fibonacci extensions are levels that extend beyond current price. When it comes to Fibonacci extensions, there are mainly two levels traders need to be aware of: 1.382 and 1.618.

Once you have identified a trend-leg with a retracement (an A-B-C move), you can use the Fibonacci tool and the extensions project the

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