Hello Traders,
For 2014 I would like to wish all of you discipline and patience in your trading!
So I was doing some research and signal evaluator work on some candlesticks formation to go along with some of the conditions I like to use and figured might as well share some of the basic knowledge with my readers…
The following is taken from my CQG trading/chart terminal. If anyone is interested in a free trial, feel free to email me or visit our CQG section on our website.
So today, two formations I started exploring:
1. Engulfing Bearish
The Engulfing Bearish formation is, of course, a bearish formation and therefore its symbol (EG) will always appear at the top of the formation. It represents the opposite of the Engulfing Bullish formation. Three criteria establish an Engulfing Bearish formation:
*The market has to be in a clearly definable up-trend, even if the trend is short term.
*Of the 2 candlesticks in the formation, the second candle’s real body must engulf the first candle’s real body.
*The second real body of the formation should be “down” while the first real body should be “up.”
2. Engulfing Bullish
The Engulfing Bullish formation is, of course, a bullish formation and therefore its symbol (EG) will always appear at the bottom of the formation. It represents the opposite of the Engulfing Bearish formation. Three criteria establish an Engulfing Bullish formation:
*The market has to be in a clearly definable downtrend, even if the trend is short term.
*Of the 2 candlesticks in the formation, the second candle’s real body must engulf the first candle’s real body.
*The second real body of the formation should be “up” while the first real body should be “down.”
Above is a daily chart of Gold futures, going back to March 17th 2014 where one can see a good example of the ” Bearish EG” formation and yet in the same exact chart you can see a failed “Bullish EG” formation on May 2nd 2014.
Will continue and explore a few other candlesticks formations over the next couple of weeks.
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. Past performance is not indicative to future results.
If you like Our Futures Trading Daily Support and Resistance Levels, Please share!
Futures Trading Levels
| Contract Sept. 2014 | SP500 | Nasdaq100 | Dow Jones | Mini Russell | Dollar Index |
| Resistance 3 | 1962.75 | 4005.33 | 16762 | 1155.70 | 82.12 |
| Resistance 2 | 1954.00 | 3976.17 | 16696 | 1148.80 | 81.93 |
| Resistance 1 | 1948.25 | 3960.58 | 16651 | 1144.00 | 81.80 |
| Pivot | 1939.50 | 3931.42 | 16585 | 1137.10 | 81.61 |
| Support 1 | 1933.75 | 3915.83 | 16540 | 1132.30 | 81.48 |
| Support 2 | 1925.00 | 3886.67 | 16474 | 1125.40 | 81.29 |
| Support 3 | 1919.25 | 3871.08 | 16429 | 1120.60 | 81.16 |
| Contract | December Gold | Sept.Silver | Sept. Crude Oil | September Bonds | Sept. Euro |
| Resistance 3 | 1327.7 | 20.4 | 98.89 | 140 23/32 | 1.3480 |
| Resistance 2 | 1322.1 | 20.3 | 98.33 | 140 4/32 | 1.3448 |
| Resistance 1 | 1317.3 | 20.0 | 97.86 | 139 26/32 | 1.3407 |
| Pivot | 1311.7 | 19.9 | 97.30 | 139 7/32 | 1.3375 |
| Support 1 | 1306.9 | 19.7 | 96.83 | 138 29/32 | 1.3334 |
| Support 2 | 1301.3 | 19.5 | 96.27 | 138 10/32 | 1.3302 |
| Support 3 | 1296.5 | 19.3 | 95.80 | 138 | 1.3261 |
| Contract | Dec Corn | Sept. Wheat | Nov. Beans | Dec. SoyMeal | Dec. bean Oil |
| Resistance 3 | 375.9 | 539.7 | 1074.83 | 349.07 | 35.30 |
| Resistance 2 | 373.1 | 537.3 | 1068.92 | 347.43 | 35.11 |
| Resistance 1 | 371.4 | 532.7 | 1057.83 | 344.77 | 34.71 |
| Pivot | 368.6 | 530.3 | 1051.92 | 343.13 | 34.52 |
| Support 1 | 366.9 | 525.7 | 1040.8 | 340.5 | 34.1 |
| Support 2 | 364.1 | 523.3 | 1034.92 | 338.83 | 33.93 |
| Support 3 | 362.4 | 518.7 | 1023.83 | 336.17 | 33.53 |
source: http://www.forexfactory.com/calendar.php
All times are Eastern time Zone (EST)
| Date | 4:14pm | Currency | Impact | Detail | Actual | Forecast | Previous | Graph | |
|---|---|---|---|---|---|---|---|---|---|
| ThuAug 14 | 1:30am | EUR | French Prelim GDP q/q | 0.1% | 0.0% | ||||
| 2:00am | EUR | German Prelim GDP q/q | -0.1% | 0.8% | |||||
| 2:45am | EUR | French Prelim Non-Farm Payrolls q/q | -0.1% | -0.1% | |||||
| 3:15am | CHF | PPI m/m | 0.0% | 0.0% | |||||
| 4:00am | EUR | ECB Monthly Bulletin | |||||||
| 5:00am | EUR | Final CPI y/y | 0.4% | 0.4% | |||||
| EUR | Flash GDP q/q | 0.1% | 0.2% | ||||||
| EUR | Final Core CPI y/y | 0.8% | 0.8% | ||||||
| 8:30am | CAD | NHPI m/m | 0.2% | 0.1% | |||||
| USD | Unemployment Claims | 307K | 289K | ||||||
| USD | Import Prices m/m | -0.2% | 0.1% | ||||||
| 10:30am | USD | Natural Gas Storage | 81B | 82B | |||||
| 1:01pm | USD | 30-y Bond Auction | 3.37|2.4 | ||||||
| 14th-20th | CNY | Foreign Direct Investment ytd/y | 2.2% |
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.