Trading Plan (Trend trading)

A popular trading expression is "the trend is your friend." I will be using this week Nikkei 225 as an example to illustrate how you can use hourly chart to guide your intra-day trade plan. Trade plan: If the higher time-frame is moving in an uptrend, for intra-day trading, you simply need to be looking out for buying opportunities. This does not mean that all your trades will be winners. A strategy wins most and has a minimal trade draw-downs should be consider a good strategy. Hourly PPTA trend analysis from Monday(17 Oct) to Friday(21 Oct) is ==> Sideway to Bullish mode. On Monday (17 Oct), hourly PPTA indicate market is still in side-way mode (pink inside purple). What about lower time-f

Trading with Pattern

Head & Shoulder patterns are known to be indicators of a market reversal, this pattern may also occur in an inverse fashion where the head rest at the bottom of the chart, and is commonly known as "inverse Head & Shoulder". To increase the probability of trades placed, chart pattern can be used in conjunction with an additional indicator. (eg: Fibonacci retracement tool) Can you see a pattern on "ES" this morning? Can you see the Inverse Head that is resting on PAPLine-S2? How would you place your trade entry with this pattern? Let's pull out Fibonacci retracement tool from our indicator list. (most charting software should come with this indicator) Of course, there are many other important

A trading plan (Part 1)

One of the best way to not let emotions influence your trading activities is to have a defined trading plan that describes in concrete terms what you will do in any given market scenario. Many traders do not attempt to have a trading plan because they aren’t really sure where to begin or how to write one. (In that case, I help you with one) Success in the markets is a function of discipline, and most people simply do not have enough self-discipline to determine if they are trading emotionally or objectively. This is where having a defined trading plan comes in; a trading plan will act as a guide which will keep you on the disciplined trading path. What are the critical elements of a trading

Fibonacci & The Golden Ratio

Traders use the Fibonacci retracement levels as potential support and resistance levels. Since so many traders watch these same levels and place buy and sell orders on them to enter trades, the support and resistance levels tend to become a self-fulfilling prophecy. Traders use the Fibonacci extension levels as profit taking levels. Again, since so many traders are watching these levels to place buy and sell orders to take profits, this tool tends to work more often than not due to self-fulfilling expectations. Finding Fibonacci Retracement Levels In order to find these Fibonacci retracement levels, you have to find the price exhaustion point. From there, use the "Fibonacci retracement" tool

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Futures Trading is speculative and is not suitable for all investors. The risk of loss in trading can be substantial. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. This brief statement cannot disclose all the risks and other significant aspects of the Futures markets. You should therefore carefully study Futures Trading before you trade. Information and trading tools provided in and through this website are for general information purposes only. All investments involve risk, including potential loss of principal. Clients must consider all relevant risk factors, including their own personal financial situation before trading.