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What is a Death Cross in Futures Trading?

A death cross is a bearish chart pattern used in technical analysis which occurs when a slower moving average crosses above a faster moving average.

The 200-period simple moving average (SMA) crossing above the 50-period is the most frequently used combination to track death crosses, but any fast & slow moving average can be used depending on trading style, time frame, asset type and other preferences.

A death cross is the opposite of a golden cross, in which a faster moving average crosses up on a slower moving average. In this sense, death crosses are regarded with the same significance as golden crosses.Read More

Dow, S&P 500 Close Higher Two Days in a Row

For the first time since February 12th, Dow and S&P 500 futures saw gains for two consecutive sessions. While this is a positive signal for many traders, much of yesterday’s gains were pared before the close.

A major contributor to the 2-day rally, Boeing (BA) closed up 24% Tuesday, accounting for more than a third of the Dow’s advance. Conversely, although the Nasdaq was up as much as 2.7% yesterday, it fell behind the other indexes late in the day and finished lower.Read More

Leverage Your Trading Capital with Micro E-mini Futures

In the words of Archimedes, “Give me a lever and a place to stand and I will move the earth.” From his reference point, leverage was the power gained from the mechanical advantage of using a lever.

In futures trading terms, leverage refers to the ability to control a high-value contract with a much smaller investment through the use of borrowed capital. This boosts a trader’s buying power and allows traders to control large positions with minimal risk capital.Read More

Trade Micro E-mini Futures Around the Clock

Micro E-mini equity index futures offer unique advantages over traditional financial products. One distinct benefit of Micro E-minis is the ability to trade around the clock.

Compared to stocks & ETFs which have a regular trading session of only 6.5 hours, futures products trade nearly 24 hours a day, 5 days a week. For equity index traders, this allows for more trading opportunity and the ability to manage positions any time of day.Read More

Coronavirus Impact Stirs Record Volatility

As communities and business around the globe undergo significant transitions in an effort to contain the COVID-19 virus, the economic fallout of the pandemic has raised volatility to record levels.

On Sunday, the Federal Reserve announced an interest rate cut to near zero in an attempt to stabilize markets, but nevertheless Monday’s volatility shot sky high. The CBOE’s volatility index (VIX) is at levels not seen since 2008 as US markets stagger at 3-year lows.Read More

Stock Futures Plummet on Europe Travel Ban

For the second time this week, equity index futures were locked limit down temporarily this morning as markets absorbed Trump’s announcement of a comprehensive travel ban from Europe to the US.

Markets tumbled yesterday after the World Health Organization declared the Covid-19 coronavirus a global pandemic. In an effort to contain the spread of the virus, President Trump issued a 30-day travel ban from Europe to the US, excluding the UK.

As stated by the White House, the ban “only applies to human beings, not goods and cargo.” Nevertheless, European stocks plunged to the lowest levels since June 2016 on the news.Read More

What Are Lock Limits in Futures Trading?

In futures trading, lock limits are the maximum amount price can change up or down from the previous day’s closing price. If breached, these limits can result in a trading halt of the instrument.

Lock limits are determined by the trading exchanges and are in place to keep markets orderly in times of extreme volatility. Trading halts due to lock limits can last from 5 minutes to an entire trading day. The purpose of a lock limit is to allow traders to digest any news impacting markets as well as to draw additional liquidity.

Although they are seldomly used, it is important to understand how lock limits can affect markets.Read More

Create Custom Forex Workspaces and Watch Lists

NinjaTrader’s industry-leading trading platform empowers forex traders with state-of-the-art charting, analysis and automation capabilities.

A workspace is a collection of windows in the NinjaTrader user interface. These windows can feature charts, technical indicators, drawing objects, watchlists via the Market Analyzer, order entry interfaces and more. Read More