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Charts
that
talk can help improve your trading
If
you’re short on time, but still need
to know exactly what the chart is saying, I recommend you watch the
video below on a new Talking Chart system.
A
patent is pending on this technology and the
users of the Talking Charts have flooded the company with emails and
phone calls of praise. The technology reads and analyzes the details of
the chart, then dictates the analysis right to you. As an added bonus
you’ll hear from 3 different HUMAN voices! No robots here.
Just great chart analysis to go along with very powerful charts.
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TECHNICAL ANALYSIS
When trading futures and options, money is made by buying low and
selling high, or vice-versa. If you could predict prices perfectly,
then making money in futures and options would be terribly easy.
Unfortunately, predicting futures prices has proven to be anything but
easy. While most futures traders admit that it is impossible to predict
prices perfectly, most nevertheless believe that they can improve their
chances beyond a "pure guess". How they go about this differs from
trader to trader. Some use fundamental analysis, others rely on
technical considerations, while still others base their trading on gut
instinct or seemingly totally unrelated events such as celestial
movements. By far, the most commonly used methods of price prediction
can be grouped into either fundamental
analysis or technical analysis.
Technical
Analysis
Technical analysis attempts to predict the price of a futures contract
based solely on historical prices of the futures contract. Technical
analysts contend that prices already contain all relevant information,
so fundamental analysis is redundant. By the time you determine where
prices should be based on the information of a fundamental model, you
will find that prices are already there; that is, prices have already
incorporated the available information and have moved accordingly.
Consequently, one needs to study price movements themselves in order to
predict prices.
Technical analysis relies heavily on chart formations and indicators.
There are several chart formations, for example the head-and-shoulders
pattern and the double-top, which are used to predict a change in price
trend: from up to down. There are other price patterns that suggest
that prices will continue to trend, or break out of a period of
consolidation (sideways movement). Indicators, such as momentum and the
RSI over-bought/over-sold indicator, are used to identify the
likelihood of a price reversal, or the sustainability of the current
price movement. Moving averages of historical prices are also used to
generate buy and sell signals, and warn of a possible price reversal.
The body of technical analysis is substantial, and continues to grow as
traders develop new and supposedly better chart patterns and indicators.
The chief advantage of technical analysis is its simplicity: applying
many of the techniques only requires an historical graph or chart of
the futures price. Such prices are widely available from charting
services and free updated daily charts are available on the World Link
Futures web site. This can, however, also be a disadvantage. Since
everyone has access to historical prices, and since each can also buy
and read the same textbook on technical analysis, it is intuitively
difficult to explain how you can expect to outperform other traders.
Nevertheless, technical analysis has developed a large following.
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TRADING
EDUCATION
FREE VIDEOS from INO TV!
Click
Here |
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Did you
know?....
One of the
reasons why
futures were created was so that the retail trader could participate in
exciting commodities, some of which have made incredible gains, like
the stock market indices, the grains, gold, oil, and even orange juice.
Others are doing it...
Some are
dentists,
others teachers, still others are construction workers or stay-at-home
moms or dads. Some have university degrees while others, only a
high-school diploma.
Why learn about commodities?...
Because the
commodity
markets hold tremendous opportunity for profit. But there is also
significant risk of loss. Beginners must educate themselves and
determine if commodity trading is suitable for them.
Offered by
the Chicago Mercantile Exchange
Click here for your FREE Educational Package
Buying
Options on Futures Contracts
Although
futures
contracts have been traded on U.S. exchanges since 1865, options on
futures contracts were not introduced until 1982. Today, options on
futures contracts offer a wide and diverse range of potentially
attractive investment opportunities. This booklet is designed to
provide you with a basic understanding of options on futures contracts
- what they are, how they work and the opportunities and risks involved
in trading them.
Options on Futures
With
options on futures,
traders can construct strategies that profit in advancing, declining or
even stable markets, while at the same time reducing risk and
increasing leverage. However, before you incorporate options into your
trading and risk management decisions, you should thoroughly
investigate the risks, nomenclature and strategic uses of these
instruments. The more background you have in options, the more likely
you will be able to take full advantage of these powerful financial
instruments.
Futures & Options Strategy Guide
With the
many futures
and options strategies available to the trader, it is sometimes hard to
keep track of them all. This 49-page Strategy Guide illustrates 21
trading strategies in an easy-to-analyse, graphical format. It starts
with basic, simple strategies and progresses to more sophisticated
option-related strategies like butterfly spreads, ratio spreads and
box/conversions. It cross-references each strategy with market
sentiment, whether bullish, bearish, or neutral and with volatility,
whether rising or falling. For each trade, it details the break-even
point, risk and potential gain at expiration as well as "things to
watch" along the way. This Guide is a great reference for any trader.
Offered by
the Chicago Mercantile Exchange and
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