Weekly Newsletter: The Rising Wedge Trading Pattern + Levels for June 17th
Posted By:- Ilan Levy-Mayer Vice President, Cannon Trading Futures Blog
Cannon Futures Weekly Newsletter Issue # 1154
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Have a safe Memorial Day Weekend. Trading Schedule HERE
In this issue:
- Important Notices – FX Trading Contest
- Trading Resource of the Week – Trading Pattern: Rectangle Trading
- Hot Market of the Week – August Live Cattle
- Broker’s Trading System of the Week – ES Day Trading System
- Trading Levels for Next Week
- Trading Reports for Next Week
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Important Notices – FX Trading Contest
Participate in the upcoming Currency Cup: FX Trading Challenge where you’ll trade our suite of highly liquid benchmark FX contracts in a risk-free environment while competing against other traders for the chance to win cash prizes.
Learn how to trade FX futures and options
Through participation in our challenge, you’ll receive daily exclusive educational videos where you’ll learn about the key benefits of trading FX futures contracts.
Trade the world’s leading currencies
Competition Dates
Starts:
Sunday, July 23 at 5:00 p.m. CT / 22:00 UTC
Ends:
Friday, July 28 at 12:00 p.m. CT / 17:00 UTC
Prize Details
Overall Leaderboard
First Place Prize: $2,500
Second Place Prize: $1,500
Third Place Prize: $850
This competition is open to residents in the United States (US), Canada (CA) excluding Quebec, *Brazil (BR), United Kingdom (UK), Germany (DE), Netherlands (NL), Switzerland (CH), United Arab Emirates (UAE), Dubai International Financial Centre (DIFC), Abu Dhabi Global Market (ADGM), Republic of Korea (KR), Taiwan (TW), and Japan (JP).
*Residents of Brazil must have a bank account in the United States to be eligible to receive a prize.
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Trading Resource of the Week – : Rectangle Trading Pattern
By Joe Easton, Senior Broker
Formation:
- This pattern is defined as price coming into a tight range between support and resistance
- This pattern is a continuation pattern. If the trend was up it will continue up and down it will continue down
- Typically, volume is lower through this period of consolidation.
Try a FREE demo of the platform used to show the charts in this educational article. The platform is FREE and has charts, news, DOM, T&S, Alerts, advanced order entry, options and MUCH MORE!
In the examples above the range is creating a rectangle pattern in an uptrend. Ideally this pattern breaks higher without breaking lower support. If lower support is broken this pattern would no longer be a rectangle.
How to Trade:
The ideal entry is toward the bottom of the rectangle support. If entered on this line your stop should be below support. Price should bounce off support 2 to 3 times to be confident support is present.
The more conservative entry would be when the resistance in the rectangle is broken. This can happen very quickly and needs to be timed more accurately. The lower support line then becomes your stop. You could also make the resistance line become your stop.
When price breaks out you can measure the width of rectangle and project the price to move from the breakout that same distance at a minimum.
Summary:
Rectangles patterns exist in low volume consolidation in both uptrends and downtrends. Price corrects in two ways, time and price. This would classify more as a time correction considering price stays relatively consistent. Once price closes above the resistance you can expect the price to not retrace back into the rectangle. If there is a false breakout, the continuation is less likely to occur. Generally, if you are able to spot a rectangle you can expect the price trend to continue.
Important: Trading commodity futures and options involves a substantial risk of loss.
The recommendations contained in this chart are of opinion only and do not guarantee any profits.
Past performances are not necessarily indicative of future results
- Hot Market of the Week – August Live cattle
Hot market of the week is provided by QT Market Center, A swiss army knife charting package that’s not just for Hedgers, Cooperatives and Farmers alike but also for Spread traders, Swing traders and shorter time frame application for intraday traders with a unique proprietary indicator that can be applied to your specific trading needs.
August Live cattle Is extending its rally into new highs where the chart is taking aim at its low percentage fourth upside PriceCount to the 183.30 area. This objective is consistent with the weekly chart High established last month it should be enough to satisfy this phase of the bull market.
PriceCounts – Not about where we’ve been , but where we might be going next!
The PriceCount study is a tool that can help to project the distance of a move in price. The counts are not intended to be an ‘exact’ science but rather offer a target area for the four objectives which are based off the first leg of a move with each subsequent count having a smaller percentage of being achieved. It is normal for the chart to react by correcting or consolidating at an objective and then either resuming its move or reversing trend. Best utilized in conjunction with other technical tools, PriceCounts offer one more way to analyze charts and help to manage your positions and risk. Learn more at www.qtchartoftheday.com
Trading in futures, options, securities, derivatives or OTC products entails significant risks which must be understood prior to trading and may not be appropriate for all investors. Past performance of actual trades or strategies is not necessarily indicative of future results.
With algorithmic trading systems becoming more prevalent in portfolio diversification, the following system has been selected as the broker’s choice for this month.
PRODUCT
SYSTEM TYPE
Intraday
Recommended Cannon Trading Starting Capital
$12,000
COST
USD 130 / monthly
The performance shown above is hypothetical in that the chart represents returns in a model account. The model account rises or falls by the average single contract profit and loss achieved by clients trading actual money pursuant to the listed system’s trading signals on the appropriate dates (client fills), or if no actual client profit or loss available – by the hypothetical single contract profit and loss of trades generated by the system’s trading signals on that day in real time (real‐time) less slippage, or if no real time profit or loss available – by the hypothetical single contract profit and loss of trades generated by running the system logic backwards on back adjusted data. Please read full disclaimer HERE.
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Trading Levels for Next Week
Daily Levels for July 17th, 2022
#ES, #NQ, #YM, #RTY, #XBT, #GC, #SI, #CL, #ZB, #6E, #ZC, #ZW, #ZS, #ZM, #NG
Weekly Levels
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Trading Reports for Next Week
First Notice (FN), Last trading (LT) Days for the Week: www.mrci.com
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 herein 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.
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.
