Videos uploaded by user “Futures Trading In Under 7 Minutes”
Trade A-B-C Pattern Like a Pro - In 5 Minutes
In this video, pattern trading expert Suri Duddella shows us how to trade the A-B-C pattern. Suri is the author of Trade Chart Patterns Like the Pros. You’ll learn some characteristics about pattern trading, get an overview of the A-B-C pattern, then see a trade example using the E-Mini S&P futures contract. The A-B-C Chart pattern is a prime example of symmetry in the markets. Using Fibonacci factors, and based on the A-B-C point locations, a hierarchy of profit targets can be set. Symmetry also extends to time. The combined length of time from A-B, and then B-C, can be projected forward as the time frame for pattern completion. Price and time projections provide potential target zones to manage trades.
3 Price Action Tips for Day Traders
In this video, you’ll learn three Price Action tips for Day Traders. Galen Woods, a leading expert, offers these tips. You can find Galen's article at https://www.tradingsetupsreview.com/3-useful-tips-intraday-price-action-trading/ An example for each tip is provided. Avoid congestion. Limit risk with narrow range bars. And, don’t fight price momentum.
Introduction to Spread Trading - In 10 Minutes
This video introduces spread trading in 6 points. Spread trading is the simultaneous buying and selling of related futures contracts. Inter-market spreads combine different but related markets. Intra-market spreads combine futures contacts of the same market, but with different expiration dates. This is called a calendar spread. Margin requirements and systemic risk is reduced. But remember, all futures trading involves substantial risk.
Futures = Leverage - In 2 Minutes
Futures are referred to as a Leveraged financial instrument. This is a basic concept; but it’s specific meaning and implications are often overlooked. This video quickly reviews this idea . Physical leverage multiplies your output, without a corresponding increase in your efforts. Financial leverage works in a similar manner. With futures contracts, you can control more assets with a relatively small amount of capital. This magnifies both the opportunity; and the risk. Let’s say you want to invest $2,500; and you think that the price of oil is going to rise. If the price of oil is currently $50 per barrel; you could buy 50 barrels with your $2,500. As an alternative to buying the physical asset, you could use the leverage of a futures contract. At the time of this recording, a $2,500 margin deposit would enable you to enter into one oil futures contract. This futures contract would give you exposure to the price change of 1,000 barrels of oil. For the same amount of capital, your gain or loss would be magnified 20-times compared with buying the physical asset. Let’s compare these two scenarios; investing in the physical asset, versus a futures contract. In both situations, our capital commitment is $2,500. We’ll ignore commissions and other costs. If you invest in 50 barrels of oil; a $5 price change will result in a gain or loss of $250. If instead you enter into a futures contract, that same $5 price change will be leveraged into a gain or loss of $5,000. This represents a 200% increase or decrease on your initial $2,500. Futures magnify opportunity; and they magnify risk. Keep this dynamic in mind as you plan your risk management guidelines.
Futures Spread Trade Setup - In 5 Minutes
Futures Spread Trade Setup shows a Calendar Spread setup example, with eurodollar futures. Spread trading reduces systemic risk and margin requirements. Tracking the spread as it hits support and resistance provides setup points. Risk management is important, as the trader can get lulled into a predictable pattern.
Futures Trading Breakout Setup in 4 Minutes
Futures Trading Breakout Setup in 4 Minutes shows a trade strategy for times of low volatility. A combination of an Inside Day and a 4-day narrow trading range provide this setup. An example is shown using resting stop orders to enter. False breakouts are the primary risk.
RSI - Short Term Warning Signal - In 5 Minutes
The Relative Strength Index, or RSI, can provide a valuable warning signal when a price trend is in danger of ending. Traders primarily use RSI to determine if a market is Overbought or Oversold. But, Wells Wilder, the creator of RSI, considered divergence its most indicative signal. According to Wilder, divergence signals a potential reversal point because directional momentum does not confirm price. When coupled with a reading of over 70 or under 30, it’s a warning that should be heeded. A trade example is provided using the British Pound futures contract.
Head & Shoulders Patterns - In 5 Minutes
In this video, pattern trading expert Suri Duddella shows us how to trade the Head & Shoulder pattern. You’ll learn some characteristics of this pattern, look at its reliability, and walk through the trade mechanics using an example. Like in any pattern, they must be traded with proper identification, its market context, and increased volume to signal pattern breakout. Strict money management/risk rules should be used for trade execution.
3 Reasons to Expand Your Trading Time Frame - In 3 Minutes
If you trade intra-day, this short video will give you 3 reasons to consider extending your trading time frame. The rapid pace of a 1-minute or 5-minute time frame can be exciting. But would your trading methods be more profitable in a higher time frame? Consider extending your trading timeframe to reduce market noise, minimize high frequency trading impact, reduce fatigue, and hopefully increase your profit and enjoyment.
Futures Trading Triple Confirmation - in 3 Minutes
Futures trading is about probabilities. You increase your odds of success by confirming trade setups with multiple indicators. An example uses candlestick patterns, support and resistance, and volume to cross-confirm a setup with Treasury Bond futures.
Engulfing Pattern Back-Test Results - In 3 Minutes
Engulfing patterns have a reputation of being high-probability indicators of a price reversal. We back-tested the E-mini-S&P 500 futures contract, and the crude oil futures contract. In this video, you’ll get the results of these tests, looking back over more than two years. Back-testing rules are shown. Then results of winners to losers, and average gain and loss are shown.
Using the Volatility Cycle - In 3 Minutes
Whatever your trading style, it’s wise to factor in where the market is, relative to the trading range volatility cycle. This short video reviews how trading range is measured, and then overviews its cyclical tendency. True range includes any gapped-over range territory. Markets tend to alternate between periods of range expansion, and range contraction. Range swells as markets make directional moves. Supply and demand are out of equilibrium. This is when strong trends can form. Then, at some point, the market enters a period of rest. Price consolidates; equilibrium returns; and range contracts. This ebb and flow repeats itself over and over. In periods of expansion, consider momentum-based set-ups that follow the trend. But don’t push your luck when expansion begins to exhaust. Probabilities point to a forthcoming contraction. Here you may want to use strategies that fade off of support and resistance. Favor central tendency set-ups that anticipate a price return to the mean. When range contracts for a time, prospects then are that an expansion is near. This may be a good time to consider some type of breakout set up. In summary, be aware of this range volatility cycle, and select your trading setups appropriately.
Time of Day Tendencies - In 4 Minutes
Each futures market has its own unique time-of-day tendencies. Even if you’re a long-term trader, as opposed to a day-trader, you should be aware of this. At some point, you’re going to want to enter or exit the market. Know the times to seek out, and the times to avoid. We look at time-of-day tendencies for two primary market characteristics; volume and volatility. Volume is an indicator of liquidity. The higher the volume of a futures contract, the easier it is to buy and sell with narrow bid/offer spreads, creating less slippage. High volume markets are also less prone to wild price swings. Volatility is associated with Risk. The higher the volatility of a market, the more you can gain or lose. We’ll focus on six futures contracts; The E-mini S&P, the 10-year U.S. Treasury, Crude Oil, Gold, Corn, and the Euro. We measure risk by looking at the Average Daily True Range for each market over the month of July, 2017. By way of comparison, note that the potential for gain or loss in Gold was almost four times that of Corn. Volume and trading range are not distributed evenly throughout the day. For the E-Mini S&P contact, the opening and closing periods account for 30% of the volume. There is very light trading in the overnight time periods. This shows that even a market with overall high volume can go through illiquid periods. In the overnight hours there is a disproportional high trading range, relative to volume. This is seen in many markets. Most people would view this combination of higher risk and lower liquidity as very unattractive. The 10 Year U.S. Treasury has a volume spike at 8:30 in the morning. This is probably somewhat due to the fact that key economic announcements often occur at this time. Be aware of the day’s scheduled news events and plan accordingly. Note that Gold and the Euro come closest in this group to offering a 24-hour market. If you are limited in the times of day you can trade, these markets may offer more of an opportunity to fit your schedule. The message is that market characteristics change throughout the trading day. Choose the times when those characteristics best fit your trading style, and the situation you find yourself in.
A New Perspective on Charts - In 4 Minutes
In this video, you’ll get an introduction to Constant Volume Charts, and see the dramatic impact they have on your perception of price movement. Traders rely on charts that typically have three elements. Price, time, and Indicators like RSI, ADX, MACD. You can eliminate indicators and time, to get pure price action. An example with the e-mini S&P futures contract is provided.