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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.

Dear Traders,

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FOMC tomorrow. Do your homework, look at price action during the last few FOMCs.
Also we will have a LIVE WEBINAR with live price action post FOMC and see in real time what type of information price action and order flow provide. Register here.

A Trailing stop Tweak   by John Thorpe, Senior Broker:

When traders decide to deploy trailing stops, they may decide to take a look at avg truer range to determine volatility of the market so they have a better gauge of how much to risk on each trade and how likely, if they are correct about the direction, will they be to successfully set the trailing distance. Tweak your stops to reduce the risk to your Net Liquidating Value.
               Whatever indicator or set of indicators you like to use to determine how many points the market must travel before your stop automatically modifies and moves to your new “Protection Level”, I think all traders agree when this happens, we have a winning trade on the books., Typically the worst we will get filled when the market does change direction, with a little slippage is a trade that finishes in the black!
               What happens when the stop doesn’t trail, a hard stop is elected the market takes the position out, with a little slippage, below our breakeven? The trade ends in the red.
Whether you trail or use a hard stop, stops are part of risk management and in my opinion, essential to long range trading success: use stops or trailing stops.  If the stop never trails, the trade will end with a predetermined loss,(less slippage and fees) , Some people like to set stops after they enter the market, (some say they do but rarely will). I do.
The importance of using stops can not be understated. What I do once I have determined how many ticks I will use for my trailer, is to place the Trailing stop LESS THAN my hard coded distance E.g. hard coded trailing distance is 20, I will place the stop at 12 or 14. That way, if the market modifies the stop at least once, the trade will do better than break even by 6 or 8 points less fees rather than getting stopped at breakeven less fees.  If the stop modifies twice then I have the potential for a 34 to 36 point gain on this trade, less fees. If the position gets stopped I will not take a 20 point loss, rather a 14 to 16 point loss.
If we always place the trailing stop at the same distance when we initiate our entry trade, we will always do worse than breakeven if we get stopped out.  If you loosen your trailer and tighten your entry, you might just turn the account from red to black.
Our free platform, E-Futures Int’l offers trailing stops as one of the order types as you can see below. Sign up for a FREE, Realtime data demo here.

E-Futures Demo

 

Bookmap Real-Time Order Flow Analysis Webinar

 

 

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 when it comes to Futures Trading.

 

Futures Trading Levels

9-22-2021

Support and Resistance Levels 9.21.2021

Economic Reports, source: 

 www.BetterTrader.co

BetterTrader Reports 9.21.2021

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 as well as options on futures.

Posted in: Future Trading News   | futures trading education  

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  • Using Bollinger Bands and Parabolics
  • Using range Bars for Day-Trading
  • The concept of Price Confirmation
  • How to Use Support & Resistance Levels
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