Build Your Trading IQ

Basics, building blocks & resources for new traders

Point and Figure Charts for Futures Trading Strategies

By | March 22, 2017

Point and figure (P&F) charts can help traders establish a clearer view of the market when building futures trading strategies. By monitoring the supply and demand of a futures contract, point and figure charts provide a calculated estimate of optimal exit and entry trading points.Read More

Fibonacci Retracement Levels: Futures Trading Strategies

By | March 20, 2017

Fibonacci Retracement levels are a component of technical analysis that can assist traders in analyzing and trading market trends and channels. When used to help identify pullbacks and price reversals, Fibonacci Retracements rely on calculated levels to provide insight. Read More

Triple Top Reversal: A Bearish Technical Trading Pattern

By | March 15, 2017

Triple top reversals are technical trading patterns that can potentially indicate bearish reversals. Known for establishing their “W” shape before reversing, triple top reversals can take between 3 and 6 months to fully develop. Read More

Futures Arbitrage: Backtest to Find Correlations

By | March 13, 2017

By analyzing historical price movement of two similar financial instruments, you may discover a trade opportunity known as an arbitrage or pairs relationship. Though these two financial instruments may appear to move together, there are sometimes differences in price due to market inconsistencies. By taking advantage of these inconsistencies, arbitrage trade opportunities may appear.Read More

Identify a Futures Arbitrage Trade: S&P 500 (ES) & Nasdaq (NQ)

By | March 7, 2017

An arbitrage or pairs trade opportunity involves buying and selling two correlated financial instruments at the same time. The goal of a pairs trade is to profit off the difference in price between the two. This type of trade can work due to pricing discrepancies between two financial instruments that react to general market moves similarly.Read More

Identify Trend Strength & Direction Using NinjaTrader’s Aroon Indicators

By | March 6, 2017

Developed in 1995 by Tushar Chande, the Aroon indicators can be a useful tool to determine trend strength and direction. Technical analysis use the Aroon indicator to determine if an instrument is trending, the strength of the trend, and to identify consolidation periods and potential reversal points. Read More

Rectangle Chart Patterns: Identify Consolidation Periods During Market Trends

By | March 2, 2017

Rectangle chart patterns, similar to pennants, are a type of continuation pattern. Continuation patterns usually signal consolidation during a trend in a trading range. After the consolidation breaks its trading range, the original bullish or bearish trend continues.Read More

Pennant Chart Patterns: Identify Consolidation Periods During Market Trends

By | February 27, 2017

Pennant chart patterns are trading indicators that can appear after big up or down market moves. This pattern can be viewed as a continuation of either a bullish or bearish trend. Pennant chart patterns serve as indicators for consolidation periods during market trends.Read More

Use Price Channels to Trade Futures Based on Support & Resistance Levels

By | February 14, 2017

Price channels can be used to identify then analyze support and resistance price trends when trading futures or forex. These trends can provide market movement indications that may act as signals for buying and selling futures trading positions. Read More

Head and Shoulders Chart Pattern: Spot Potential Market Reversals

By | February 8, 2017

Head and shoulders futures chart patterns are identified by a left shoulder, head and right shoulder. They are an example of how to use technical analysis to spot potential market reversals. The head and shoulders chart pattern can form in two types: Read More