Posted By: Ilan Levy-Mayer Vice President, Cannon Trading Futures Blog
1. Market Commentary
2. Futures Support and Resistance Levels – S&P, Nasdaq, Dow Jones, Russell 2000, Dollar Index
3. Commodities Support and Resistance Levels – Gold, Euro, Crude Oil, T-Bonds
4. Commodities Support and Resistance Levels – Corn, Wheat, Beans, Silver
5. Futures Economic Reports for Thursday July 9, 2015
For 2015 I would like to wish all of you discipline and patience in your trading!
I was asked today on how to adjust stops and targets when volatility increases, while I don’t have an exact black and white answer, couple of ways I found to be helpful are :
- Using ATR as a measure
- Using support and resistance levels.
ATR stands for Average true Range. I use it at times to measure average range for days on specific periods, sometimes I use it when looking at intraday charts. Knowing the ATR can help you in stretching or shrinking your stops and targets.
Here is an example: If you are looking at an hourly chart and using an ATR with 14 periods and it shows value of 8 points for the mini SP, what it tells you is that in one hour you can expect on average moves of around 8 points from high to lows. Knowing that figure can help you in placement of stops as well as targets. Comparing this to periods of low volatility where ATR shows value of 4 which in that case should encourage you to take smaller profits and use smaller stops as statistically there are less chances for bigger moves.
The other tool of using support and resistance levels can also be helpful as most formulas take the previous day ( or period for that matter) and calculate levels based on high/low/close etc. so the wider the ranges, the more spread apart the levels will be and vice versa.
Hope this helps and if you have specific questions, I will be happy to assist.
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.
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|Contract Sept. 2015||SP500||Nasdaq100||Dow Jones||Mini Russell||Dollar Index|
|Contract||Aug. Gold||Sept. Silver||Aug. Crude Oil||Sept. Bonds||Sept. Euro|
|Resistance 3||1183.7||15.81||54.91||156 14/32||1.1247|
|Resistance 2||1173.8||15.52||53.94||155 19/32||1.1176|
|Resistance 1||1165.8||15.30||52.86||154 27/32||1.1128|
|Support 1||1147.9||14.78||50.81||153 8/32||1.1009|
|Support 2||1138.0||14.49||49.84||152 13/32||1.0938|
|Support 3||1130.0||14.27||48.76||151 21/32||1.0890|
|Contract||Dec. Corn||Sept. Wheat||Nov Beans||Dec. SoyMeal||Aug Nat Gas|
|ThuJul 9||2:00am||EUR||German Trade Balance||20.6B||22.3B|
|10:15am||USD||FOMC Member Brainard Speaks|
|10:30am||USD||Natural Gas Storage||69B|
|1:01pm||USD||30-y Bond Auction||3.14|2.5|
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 judgment in trading.