Build Your Trading IQ

Basics, building blocks & resources for new traders

Understanding Pivot Points for Support & Resistance Based Trade Management

By | September 7, 2017

Pivot Points

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

Automated Trading: Advantages Vs. Manual Trade Execution

By | August 14, 2017

Automated trading tools allow traders to build their strategy in a computer-based system which will automatically execute trades based on predetermined market conditions. There are many advantages to automating your trades versus manual trade execution including the removal of emotion, time savings, and the potential to trade multiple markets simultaneously. Read More

Identify Bullish Market Signals With Futures Trading Indicators

By | August 8, 2017

There are a number of ways to indentify bullish markets signals and for many new traders, finding trading indicators they are comfortable with is an important first step. To help you get started, included below is an overview of a a few of these indicatators and charting patterns to look for in your backtesting.Read More

“Read the Tape” with NinjaTrader’s Time & Sales Window

By | August 7, 2017

The Time & Sales (T&S) window provides a detailed view of trading activity for a particular instrument which can be of interest for day traders. It displays real-time data of the current bid/ask, price and volume as well as color coded last traded time, price & size.Read More

Rangebound Markets: Futures Trading Strategy for Low Volatility

By | July 26, 2017

Periods of low volatility have historically been known to accompany rangebound markets. Developing a range trading strategy can potentially provide trading opportunities even with low volatility. Read More

Identify and Measure Futures Market Volatility

By | July 19, 2017

Volatility can be identified by both bullish (up) and bearish (down) extreme price action or fluctuations. Typically, extreme price action occurs when the market is biased towards the value of a financial instrument. This sentiment may result in an imbalanced number of traders selling or buying the financial instrument. Read More

Trade Futures Using an Inter-Exchange Spread Strategy

By | July 13, 2017

An inter-exchange futures spread is executed by trading two contracts of similar financial instruments on two different exchanges. Inter-exchange spreads rely on both the differences and similarities of contract attributes. Read More

Ignoring the Psychology of Futures Trading Could Spell Disaster

By | July 11, 2017

When a futures trading position starts to move against your original price action premise, it can be tough to resist the urge to exit the position for the flight to safety. A number of emotions are all too common to traders including fear, greed, anger and elation. Read More