Emini Futures Training Is The Trend Going To Continue Or Stop?

July 1st, 2010 | Author: man

So you are starting out in trading and you have a strategy for stock trading that is your own. You have gone through emini futures and after careful consideration you have settled on trend trading as your preferred trading style .

Trend trading is an attractive strategy for sure . The trending patterns just pop out when you retrospectively look at stock charts. You can salivate at the idea of catching a trend at its inception and then riding it out to its conclusion months later . Wealth beckons, success is on your doorstep !

Alas, in the real world trading is not quite so easy . You manage an entry – maybe you are late or maybe you have managed to enter near the beginning of a trend , but you do make it on board . As your predictions begin coming true and you are in this trade, you get a small profit . Then a strong day comes along and then the market stops dead when resistance is hit by the stock. You tell yourself that you can’t make the whole move in a day and there is more ahead and so you add to your position . But alas the following day the market opens up , goes nowhere for a while and then quickly heads south . Because you have added to your position you head back to break even fast and then you take a loss by the time you get your orders in place . What happened ? How could you tell ahead of time that the trend was not going to continue and that instead you should take your profit when the market opened strongly up and paused ?

Here are several tips for trading that will tell when a trend will stop and when it will continue . If you apply these to your technical analysis training you will be well ahead of the game .

First of all : use higher time period charts to set your targets ; look for areas where resistance and support are logical to determine where the market will start and stop its move .

If you can’t preduct areas of future resistance and support, or are uncertain how to coordinate time-frames in your trading , then consider using emini futures course for more information. One of the best is Drummon Geometry but many different valid schools or thought are out there.

A tool is another element that you need with which to make judgments about the strength and robustness of a trend . Resistance or support will be broken through by a strong trend and a trend that is weak will stop or even go into congestion when it hits support or resistance or it could reverse course . If you have the right tool in your analysis tool kit you can predict the more probable action; if you do not have the tools then you have to wait and see , and there’s a good chance you’ll be disappointed .

You need to use momentum tools to appropriately measure this and then apply them to a smaller timeframe then the one you are in … to make it plain if you’re trading a daily chart, with your trades try to pick the day’s high or low, then you look at the half hour or hourly chart to support the decisions you make intraday .

We’ll talk about this more in the second part of this emini futures series.

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