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| Futures
Trading Made Easy With Candlestick Charts |
Futures
trading has somewhat the same characteristics
as commodities trading. Like commodities,
futures trend more cleanly than stock prices.
Futures have much fewer outside influences
that would alter existing trends. This provides
easier analysis to futures trading than might
be expected.
As witnessed in stock trading, many outside
factors can alter or defuse a stock price
trend. A stock price can quickly change direction
due to a surprise announcement: a bad earnings
report, an S.E.C. surprise audit, change of
interest rates, a competitor bad report, and
many other things that can change the sentiment
of a stock price move.
This does not diminish the fact that the reasons
for investment groups to be buying or selling
a particular futures contract are as diverse
as any other trading vehicles. Futures trading
is utilized for straight-out speculation to
hedging delivery contracts.
Whether trading currencies, bonds, or indexes,
candlestick analysis is an integral part of
identifying reversal signals and trends. Futures
trading, like any other trading entity, has
direction as its most crucial profit
element. Similar to option trading, futures
trading has a time element. Unlike
option trading, futures trading is affected
less by magnitude of a move to produce a profitable
trade. The price of a futures contract is
affected by the contract price itself, not
an underlying trading entity.
As seen in the U.S. 30-Year Treasury Bond
chart, the trend, with its minor oscillations,
remained steady for many months. It can be
seen that candlestick signals did reveal minor
reversals, but also showed the negating signals.
Using candlestick signals in futures trading
provides the same high-probability trading
platform.
With futures being one of the most leveraged
investment entities on the market, identifying
direction is a very important function. Futures
trading, without a program like candlestick
analysis, becomes more risk-filled for both
the beginning and experienced trader. Conversely,
futures trading utilizing the candlestick
signals now has a high probability format
for producing profits. Candlestick analysis
allows the investor to anticipate and prepare
for the reversal signals. Getting into a position
exactly at the bottom reduces the risk factor.
Stop losses can be established at a much closer
price than would indicate that the buy signal
did not work.
The Candlestick Trading Forum specializes
in identifying high return, low risk futures
and commodity trades. Not all contracts are
followed. However, if you are futures trading,
please do not hesitate to e-mail the staff
at The Candlestick Trading Forum for evaluation
of contracts not being published on the site.
The Candlestick Trading Forum’s staff will
be expanding the Futures Trading area on the
site. |
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