Using Tick and Volume Charts for Future Day Traders - Cannon Trading

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.

Using Tick and Volume Charts for Future Day Traders 4.22.2016

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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 Friday April 22, 2016

Hello Traders,

For 2016 I would like to wish all of you discipline and patience in your trading!

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Why I like to use tick and volume charts for scalping

Today I decided to touch more on an educational feature rather than provide a certain market outlook.

Many of my clients and blog readers know that when it comes to short term trading I am a fan of using volume charts, tick charts, range bar charts and Renko charts rather than the traditional time charts like the 1 minutes, 5 minutes etc.

My rule of thumb is that if you as a trader make decisions based on charts that are less than 15 minutes time frame, it may be worth your time to research, back test and do some homework as to potentially using other type of charts like volume charts , Range charts etc.

Volume charts will draw a new bar once a user defined number of contracts traded. Example mini SP 10,000 volume chart will draw a new bar once 10,000 contracts traded.

Range bar charts will draw new charts once price action has exceeded a user pre define price or ticks range. Example might be an 18 ticks range bar chart on crude oil.

While the volume charts rely ONLY on volume, the range bar charts rely ONLY on price action.

Their main advantage over traditional time charts is twofold in my opinion:

1. If the market is moving fast, reports came out or there is heavy volume in the market, the traditional 5 minute chart will need 5 minutes to complete the next bar before it provides you with a signal…if you day traded futures before you will know what 5 minutes can do….The volume charts or range bar charts in this case will complete the bars MUCH faster because there is strong price action and strong volume and will be able to provide a signal faster than the time charts.

2. On the flip side, there are times when the market is dead…low volume, sideways, choppy action. If you are using the 3 minute chart and a moving avg. cross over, you may get a signal simple because time has passed and the moving averages crossed even though the market is pretty dead….If you are using a volume chart and the market is slow…it will take a while for the bars to complete and hence it may filter out some “noise” in the market.

Below is an example of range chart with mini Russell. If you like a free trial for our signals like the ones below or to discuss more in depth different charts and strategies, feel free to contact us!

Russell 2000 Index Chart Mini

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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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Futures Trading Levels

Contract June 2016 SP500 Nasdaq100 Dow Jones Mini Russell Dollar Index
Resistance 3 2122.50 4595.42 18239 1154.30 95.75
Resistance 2 2113.25 4573.58 18159 1148.40 95.22
Resistance 1 2100.75 4557.92 18044 1141.50 94.91
Pivot 2091.50 4536.08 17964 1135.60 94.38
Support 1 2079.00 4520.42 17849 1128.70 94.07
Support 2 2069.75 4498.58 17769 1122.80 93.54
Support 3 2057.25 4482.92 17654 1115.90 93.23
Contract June Gold May Silver June Crude Oil June Bonds June   Euro
Resistance 3 1296.1 18.57 45.83 165 3/32 1.1517
Resistance 2 1284.2 18.14 45.16 164 14/32 1.1467
Resistance 1 1268.1 17.60 44.39 163 16/32 1.1387
Pivot 1256.2 17.18 43.72 162 27/32 1.1337
Support 1 1240.1 16.64 42.95 161 29/32 1.1256
Support 2 1228.2 16.21 42.28 161 8/32 1.1206
Support 3 1212.1 15.67 41.51 160 10/32 1.1126
Contract July Corn July Wheat July Beans July SoyMeal May Nat Gas
Resistance 3 420.3 536.2 1061.25 351.63 2.15
Resistance 2 413.8 527.3 1048.00 343.07 2.13
Resistance 1 401.8 515.4 1037.75 335.53 2.09
Pivot 395.3 506.6 1024.50 326.97 2.07
Support 1 383.3 494.7 1014.3 319.4 2.0
Support 2 376.8 485.8 1001.00 310.87 2.02
Support 3 364.8 473.9 990.75 303.33 1.99

Economic Reports


All times are Eastern time Zone (EST)

Date 3:55pm Currency Impact Detail Actual Forecast Previous Graph
FriApr 22  3:00am EUR French Flash Manufacturing PMI 49.9 49.6
EUR French Flash Services PMI 50.2 49.9
3:30am EUR German Flash Manufacturing PMI 51.0 50.7
EUR German Flash Services PMI 55.1 55.1
4:00am EUR Flash Manufacturing PMI 51.8 51.6
EUR Flash Services PMI 53.3 53.1
5:00am EUR Italian Retail Sales m/m 0.2% 0.0%
Day 1 EUR ECOFIN Meetings
All Day EUR Eurogroup Meetings
9:45am USD Flash Manufacturing PMI 51.9 51.5

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 judgement in trading. 

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