Build Your Trading IQ

Basics, building blocks & resources for new traders

Trade Dow Jones Futures with 3 Technical Indicators

By | October 25, 2017

When analyzing the Dow Jones futures contract, technical indicators can be helpful to highlight potential trade opportunities, market reversals and price movements. Information obtained from technical analysis can assist traders to forecast future price levels, assess strength in market trends and determine overbought and oversold market conditions.Read More

How to Trade Futures Using a Calendar Spread

By | October 19, 2017

A calendar spread is a trading strategy in that the trader buys and sells two contracts with different expiration dates of the same financial instrument at the same time. This trade is designed to allow the trader to potentially benefit from the difference in price between the two expiration dates.Read More

Analyzing Crude Oil (CL) Futures Market Patterns

By | October 10, 2017

Technical indicators and chart patterns can provide analytical insight into the Crude Oil futures (CL) market by measuring price action, volume and volatility. The results of the market analytics can potentially serve as entry and exit signals, and identifying overall trend direction.Read More

The Big [Onion] Short

By | October 3, 2017

Futures instruments are far ranging, from wheat, coffee and cocoa, to gold, oil, and market indices. However, there is one futures commodity you won’t be able to add to your watch list: onions.

Here is the tale of how onion futures came to be banned by US Federal law.Read More

3 Indicators to Analyze E-mini S&P 500 Market Trends

By | September 25, 2017

Analyzing the S&P 500 futures contract (ES) with technical indicators can be useful for discovering potential trade opportunities by measuring price action, volume and volatility. Insights gained from technical analysis can serve as signals for potential reversals or subsequent market moves.Read More

FAQ for Futures Traders

By | September 21, 2017

Whether you are new to trading futures, or a long tenured trader, there are common questions that continually surface. This article will walk through some of the key areas to help you navigate the nuances of trading futures. Read More

5 Reasons to Trade Futures

By | September 12, 2017

So, you are interested in trading futures, first things first…what is a futures market?

Futures are standardized contracts for the purchase and sale of financial instruments or physical commodities for future delivery on a regulated commodity futures exchange. Below are some examples of futures contracts:Read More

Understanding Pivot Points for Support & Resistance Based Trade Management

By | September 7, 2017

Pivot Points are a popular method for determining market trend & short-term support/resistance levels using numerical averages of an instrument’s high, low & close.

The term “pivot” is often thought of as reaching a pre-determined point (support & resistance) then reversing course.

Not only can day traders use Pivots as leading indicators to determine bullish or bearish trends, they are also utilized for entry & exit points and they can act as a guide for profit target & stop loss placement. Different from a number of indicators that update dynamically throughout the trading day, Pivot Points remain static on a chart. Read More

Futures Trading Idea Based on Double Top Patterns

By | August 28, 2017

Major trend reversals can potentially be identified by recognizing double top patterns as detailed in ‘How to Identify Double Top and Bottom Patterns’. When conditions of double top patterns are identified, potential trading ideas may present themselves. Backtesting or using a simulator environment can be a logical next step to explore these trading opportunities. For NinjaTrader users, the Playback feature provides the ability to play, pause & rewind the market tick by tick using real market data.

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Futures Market Volatility: What to Look for and How to Measure It

By | August 16, 2017

Highly volatile futures markets can be characterized by dramatic swings in price action and spikes in trading volume. When two indicators of volatility react to unexpected ‘market moving’ news simultaneously, this could potentially mean market sentiment is changing. Read More