Support & Resistance Levels Daily Support & Resistance Levels

This Blog provides futures market outlook for different commodities and futures trading markets, mostly stock index futures, as well as support and resistance levels for Crude Oil futures, Gold futures, Euro currency and others. At times the daily trading blog will include educational information about different aspects of commodity and futures trading.


Bollinger Bands Trading Tools, Futures Gold Daily Chart & Trading Levels 2.20.2019

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Bollinger bands as a tool I use for exits:
Different traders have different ways and reasons why they enter a trade.
I think that exit strategies might be more important than the actual entries….
Some common exits are:
cash stop
Lowest/ highest level over x BARS
time exits ( like MOC if you are a day trader)
Trailing stops on trades that are in profit
$$ amount target or X number of ticks profits
Support and resistance levels
and many more.
One tool I like to use at times is to exit trades using the bollinger bands.
I like to modify the default settings of 20 and 2 and go HIGHER ( like 27 and 2.7) as I go LOWER in time frames.
So lets say I am long gold on the daily chart below, based on my BLUE DIAMOND, I will need to figure on my risk to the downside and perhaps initial target to the upside.
In the example below you will see that in this hypothetical trade, if I was long and using the bollinger bands as a possible exit tool, I would exit the trade on the close today as the close was HIGHER than the upper band ( I circled it with a red ellipse). The same concept can be used with short trades and the lower band.
Sometimes this technique “costs me with early exits” and “leaving money on the table and sometimes it helps me get out of a trade in a timely manner before the market pulls back.
Just sharing some trading pointers as they cross my mind in hopes it can give you some ideas to test and try in SIM mode.
You can get a free trial to the ALGOS used in the chart below .
PS: In between you can see current levels for the nice rally in gold below…..
  • Free Sierra Charts!
    For a Limited Time
    Cannon Trading Company will welcome new clients with this special offer
    • Day Trading Margins starting at $500.00
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    • FREE Order Flow Style Charts
    *Minimum account balance $5,000
    **for NEW accounts with 10 trades or more per month

Good Trading

Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors.  You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

 

Futures Trading Levels

02-20-2019

 


Economic Reports, source: 

BetterTrader.co

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This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts here in contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgement in trading.

Posted in: Future Trading News  

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Crude Oil Futures Trading Updates for February 2019

Crude Oil Futures Trading Updates for February 2019

Crude oil futures experienced one of the strongest sell offs to finish 2018. The market sold from the mid 70’s into the mid 40’s in a matter of 7 weeks.

See daily chart below:

 

There were many reasons for the sell off. US China trade talks or lack off, OPEC production, US $ strength and much more but all this is old news at this point and the main focus of futures traders going forward is ”what next?” Before I try to answer that, lets take a look at some key factors that are general in nature to futures trading and crude oil futures trading:

Crude Oil is part of the energy sector along with “it’s” brothers “RBOB – Unleaded gas” and heating oil and cousin, natural gas. All traded on the NYMEX/GLOBEX exchange.

Crude Oil Futures Specs
Hours: 5:00 PM to 4:00 PM next day PM Central Time
Margins: $3410 initial, $3100 Maint. ( as of the date of this newsletter)
Point Value: full point = $1000 ( Example: 71.80 to 72.80 ). Min fluctuation is 0.1 = $10 ( Example: 71.80 to 71.81)
Settlement: Physical, deliverable commodity

Months: Monthly cycle, All Months

Weekly Options: YES
Crude Oil is one of my favorite markets for Day Trading because of the intraday volatility and movements. Be careful, these factors can work against you or in your favor.

Some of the basic fundamentals to keep in mind when you are considering a trade in the crude oil as well as other energies

  1. Longer term view of current market prices
  2.  Dates and times of important reports. Namely, Tuesday afternoon report (API) and the DOE report on Wednesday mornings at 10:30 Am EST
  3. Weather and Seasonality
  4. Correlation to US Dollar prices
  5. Inflationary prospects
  6. Geopolitical Stability
  7. U.S. Fiscal and Monetary Stability

Keep in mind that the GLOBEX/NYMEX also offers the mini Crude oil contract which is half the size and may be a good alternative for smaller/ begginer traders.

MINI Crude Oil Futures Specs
Hours: 5:00 PM to 4:00 PM next day PM Central Time
Margins: $1705 initial, $1550 Maint. ( as of the date of this newsletter)
Point Value: full point = $500 ( Example: 62.80 to 63.80 ). Min fluctuation is 0.25 = $12.5 ( Example: 61.80 to 61.825)
Settlement: Cash Settled commodity one day prior to the Big Contract

Months: Monthly cycle, All Months

So just like when you are trading any commodity or futures contract, one has to ask themselves the following questions in my opinion:

  • What time frame are you trading / looking at? Seconds and minutes? Hours and days or maybe even weeks and months? The answer can definitely impact the type of strategy you will use
  • Do you have a view of the market? Is it going higher? Going lower? Range bound? Is there a trend?
  • What is your personal preference? Risk capital? How much time do you have for following the markets?
  • Are you experienced enough to take a go at it on your own or would you like to chat/ discuss, dissect the markets with a commodity broker, a series 3 licensed futures broker?

If your goal is to scalp and day trade crude oil futures, then take a look at what I consider a timeless piece I wrote a few years back on how to utilize fear and greed to day-trade crude oil futures.

This article has some chart examples and specific trading set ups using crude oil futures trading: Crude Oil Day Trading

Now back to the “million dollar question” – What is next for Crude Oil Futures in the next few weeks?

In order to answer that I will look at the daily chart above and then take a look at the weekly chart below:

Based on the fact that we had a major sell off that stopped on support levels, the fact that we are bouncing since then and the opinion I hold that crude oil longer term pressure is still down, my current view for this market is that we will see expanded range bound trading. I am looking for the market to trade between $48 and $59 ( hence the word expanded) over the next few weeks and perhaps more BEFORE it may attempt to take another stab at the down side.

“Well, what good is that you may say to yourself…..” If I am right and you are willing to speculate with risk capital, then this information can be valuable.

My preferred method would be to try and sell call options spread ( vertical call spreads) when the market rallies and sell vertical put spreads when the market sells off. Selling options is a risky strategy!! It is not for new commers and you can learn much more here.

The main theory behind selling the calls and the puts is to take advantage of the time decay of options.

As many of us know, geo political events affect the markets in general and crude oil futures in specific. No one can tell what news, wars, events will take place and that is obviously the unknown factor.

I tell my clients many times on different occasions that entering a trade is only the first part of the equation, the main and even more important part is: how to manage the trade? Where do I exit if I am correct? Where should I exit if I am wrong? Should I use multiple contracts? How much am I willing to risk on the trade?

Many ways to trade any market, many ways to lose money in any market and only very few ways to lock in gains – this one is not different. If you need help creating a trading plan, visit our broker assist services.

Disclaimer – Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. Past performance is not indicative of future results. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

Posted in: Crude Oil   | Day Trading   | Futures Trading  

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Getting Started in Commodity Futures Trading

Getting Started in Commodity Futures Trading

 

Since 1851, futures trading has been a cornerstone of the U.S. financial markets. However, despite its long history, trading in the futures commodities market has remained elusive to most investors. But it doesn’t have to be, trading in futures poses large risks but also substantial rewards to the level headed and well-studied trader.

The futures market deals in commodities. Originally, these commodities were agricultural, but in today’s market they have expanded to include the basic materials that make up most consumer products. Examples of commodities traded on the futures market are: gas, aluminum, currencies, cotton, gold, wheat, bonds, and oil. A futures contract is essentially a contract between a buyer and seller of one of these commodities, to buy or sell at a specified date and price.
In order to take advantage of the opportunities offered on the futures market, a trader must educate himself in supply and demand analysis. It is crucial to research the market trends of the commodities one wishes to trade in as well as seasonal cycles. Only with thorough research and preparation will a trader be fully positioned to capitalize on the trends of their chosen market.

Helpfully, the advent of electronic trading has leveled the playing field and given traders at home essentially equal access to those on the market floor. Electronic trading platforms allow all investors to guide their own portfolios, while maintaining access to licensed brokers who can assist them.

When beginning in the futures market, it is important to use a demo electronic trading platform before going live into the market. Demos allow traders to fully familiarize themselves with the pace of the market, experiencing the fast rise and fall of daily trends without the risk of actual investment. It is advisable to begin one’s futures portfolio with only 2 or 3 commodities, and demo for at least four weeks before going live. This period of time allows a trader to develop important strategies that will carry him through the market’s storms.

After four weeks of demo trading, a trader should feel confident entering the live market. It is a pitfall to get stuck in demo trading and never jump into a live account, so it’s important to remember that as long as a trader has done his research and closely monitored his demo trades, he should feel more confident in using his live account.

Once live, the most important two things for investors to remember are to trust their research over their emotions, and to avoid overtrading. Futures trading can be extremely volatile, a cool head and moderate hand will get a trader out of trouble.

Futures trading is definitely advanced work, but with the right research, a good strategy, and an ability to stay focused and level headed, a trader can conquer their fears of the market. To get started with futures trading, contact the experts at Cannon Trading!

 

Disclaimer – Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. Past performance is not indicative of future results. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

Posted in: Futures Trading   | futures trading education  

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Futures Support and Resistance Levels & Trading Schedule for President’s Day

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Voted #1 Blog and #1 Brokerage Services on TraderPlanet for 2016!!  

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Dear Traders,

Like us on FaceBook!
Get Real Time updates and market alerts on Twitter!
No Commentary today.
Holiday Hours for Presidents day below.
Trading levels and reports for tomorrow below as well.
  • Free Sierra Charts!
    For a Limited Time
    Cannon Trading Company will welcome new clients with this special offer
    • Day Trading Margins starting at $500.00
    • FREE advance charting with Sierra Charts**
    • FREE Order Flow Style Charts
    *Minimum account balance $5,000
    **for NEW accounts with 10 trades or more per month

Good Trading

Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors.  You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

 

Futures Trading Levels

02-15-2019

 


Economic Reports, source: 

BetterTrader.co

This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts here in contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgement in trading.

Posted in: Future Trading News  

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Top 50 Trading Rules & Trading Levels 2.14.2019

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Voted #1 Blog and #1 Brokerage Services on TraderPlanet for 2016!!  

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Dear Traders,

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Top 50 Trading Rules
Most Common Pitfalls To Avoid When Trading Futures-Commodity Futures
500 experienced futures brokers were asked what caused most futures traders to lose money when comes to trading futures.
Their answers reflected the trading experience of more than 10,000 futures traders.  Download the PDF and find out what they said.

1.) Have a Plan

Many futures traders trade without a plan. They do not define specific risk and profit objectives before trading. Even if they establish a plan, they “second guess” it and don’t stick to it, particularly if the trade is a loss. Consequently, they overtrade and use their equity to the limit (are undercapitalized), which puts them in a squeeze and forces them to liquidate positions. Usually, they liquidate the good trades and keep the bad ones.

2.) News Factor

Many traders don’t realize the news they hear and read has, in many cases, already been discounted by the market.

3.) Trade Objectively

After several profitable trades, many speculators become wild and nonconservative. They base their trades on hunches and long shots, rather than sound fundamental and technical reasoning, or put their money into one deal that “can’t fail.”

4.) Know Your Size

Traders often try to carry too big a position with too little capital and trade too frequently for the size of the account.

5.) Don’t Get Greedy when it comes to Trading Futures

Some traders try to “beat the market” by day trading, nervous scalping, and getting greedy.
Futures Trading Videos:
1. Identifying Support And Resistance Using A Line Chart.
2. Finding Levels of Support Resistance
3. Day Trading crude oil futures using fear and greed….

Good Trading

Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors.  You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

 

Futures Trading Levels

02-14-2019

 


Economic Reports, source: 

BetterTrader.co

This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts here in contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgement in trading.

Posted in: Future Trading News  

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