Commodity Investing: Top Technical Indicators

Averaging about , contracts per day. On a daily basis Al applies his deep skills in systems integration and design strategy to develop features to help retail traders become profitable. Now I will only show you stocks and futures markets. Similarly, you should use a higher time frame when you would be keeping an eye on the market throughout the trading day. When the histogram is positive above the center line , it gives out bullish signals, as indicated by the MACD line above its signal line. Because of that diversity, we all should try to find the best indicators for day trading that suit our own personality and how we trade, instead of simply mimicking another successful day traders and their trading set ups. Briefly touch on the use of counter trend moves in day trading crude oil futures.

When day trading--whether stocks, forex or futures--keep it simple. Use only a couple indicators, maximum, or not using any is fine too. Consider these tips to find the best day trading indicator(s) for you.

Your Guide To The Stock Market

The official blog of Tradovate, exploring futures trading from issues to innovations. Moving averages are a simple, but effective technical tool to help you quickly identify the trend. It is important for traders to understand that moving averages are a lagging indicator based on the way that they are constructed.

Who's got the momentum: The relative strength index RSI is a popular and widely used momentum indicator. It can offer traders a basic idea on who is in control of the current trend and how strong the momentum is behind the move. Deciphering a sideways market. One approach to using these bands are to decipher clues in a choppy or neutral trading environments. A daily wheat futures chart is shown below with an overlay of Bollinger Band lines. What indicators do you use?

What signals do you need for a trade entry? Where will you place your stop-loss? What is your target? Write this down and post it near your trading computer. Want to try out these indicators using real-time market data? Get 2 weeks of free access to Tradovate today! Subscribe to this blog. Futures and options trading involves substantial risk of loss and is not suitable for all investors.

I then look for what we call the counter trend move. So what do I do? I set up my crude oil futures chart with Crude oil Support and Resistance levels. I like to use an indicator similar to RSI and normally I will use either volume charts or range bar charts. I like volume charts better for the short term day-trading because I feel that when the market moves fast you will get a better visual picture using volume charts that waiting for a 3 minutes chart to complete for example.

Also if the market is "dead", low volume and not much movement, you may get false signals on the time charts just because time has passed and the bars complete. I like to set up my future trading platform with automated target and profit to be sent to the market as soon I enter my trade.

We have more than a few FREE trading platforms that will accomplish that. Below is an example of a good day trading set up from April 8th I used 18 ticks range bar chart: What I was looking for is an exhaustion in selling, let the "red bars" change to green.

I was also looking for the REL study to go below 15 and then cross back above When that happened I received my signal in the form of the green triangle. That for me triggered a buy right around In my settings I like to have 21 ticks profit target and 27 ticks stops loss.

In this example I was able to take my profit target. Very similar set up to the one above, except this time the counter move did not happen and I got stopped out pretty close to the low of the day -: Past results are not necessarily indicative of future results.

The risk of loss in futures trading can be substantial, carefully consider the inherent risks of such an investment in light of your financial condition. If you like a free trial of the charting software and the studies used in the examples I shared, please visit: To summarize I hope I was able to share with you: Crude Oil as another possible market to look at for day-trading.

The chart below shows a day moving average acting as support i. It is both a trend-following and momentum indicator. Above zero for a sustained period of time, and the trend is likely up; below zero for a sustained period of time, and the trend is likely down. Potential buy signals occur when the MACD moves above zero, and potential sell signals when it crosses below zero.

Signal line crossovers provide additional buy and sell signals. A buy signal occurs when the fast line crosses through and above the slow line. A sell signal occurs when the fast line crosses through and below the slow line. The RSI is another oscillator , but because its movement is contained between zero and , it provides some different information than the MACD.

In a strong uptrend, the price will often reach 70 and beyond for sustained periods, and downtrends can stay at 30 or below for a long time. While general overbought and oversold levels can be accurate occasionally, they may not provide the most timely signals for trend traders. Say the long-term trend of a stock is up.

A buy signal occurs when the RSI moves below 50 and then back above it. Essentially, this means a pullback in price has occurred, and the trader is buying once the pullback appears to have ended according to the RSI and the trend is resuming.

A short-trade signal occurs when the trend is down and the RSI moves above 50 and then back below it. Momentum and the Relative Strength Index.

Identifying the Market for Commodities

Day trading indicators are used for the technical analysis of charts. This is a list of the 3 best day trading indicators for Forex, Futures or Stocks. Let’s have a quick discussion about how you can find the best indicators for day trading and pick a day trading charting software that will help make your life . Best Indicators For Day Trading Stocks And Futures By Indrajit Mukherjee on January 19, • (2) In this post you will learn: 1) The best markets to trade 2) How to set up your charts 3) The 3 best indicators for day trading stocks and futures 4) How to easily identify the start and end of the trend.