Welcome to Futures Trading Guide
Futures Trading Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
Reading Trading Trends Based on Futures Charts
from:
The idea of having to look at and interpret charts could any beginner to the futures trading market scampering to the door and swearing the industry altogether.
The blur of numbers and little facts on the charts can seem intimidating at first, especially you're not into numbers, but when you really get down to the basics, it's really not as difficult as it looks.
To be able to distinguish a trend in futures trading chart correctly, you have to have a firm grasp on the basic concepts surrounding foreign exchange trade. Without this knowledge, you will not be able to pass interpretations and assessments on the lines and figures that are showcased in forex charts.
When trying to learn the ins and outs of the futures trading market, you basically have to look at three kinds of charts: The hourly chart, which contains information for the past twelve days, the fifteen-minute forex futures trading chart, which contains data for the past three days, and the five-minute chart, which holds 24-hours worth of financial information and updates.
Note the time
When studying trends in futures trading charts, it is imperative that you take note of the time posted. If you have a world clock, coordinate it with the time posted on the chart so you will have a better idea of where your investments are at a particular time frame.
In addition, you should also remember that the bid price is different from the ask price. The bid price is the quoted rate, while the ask price is the set rate. In forex trading, you sell a currency based on the bid price and buy based on the ask price. These two numbers will be present on the forex futures trading charts you will be studying.
Suggested chart-reading sequence
Experts suggest that you first take a look at hourly forex charts to have a general idea of how the market has performed for the past several days. This will give you a chance to track trends and resistance levels of every opening day.
Once you have done so, take a look at the fifteen-minute futures trading charts to be able to assess what trends are mostly likely to continue for today or the next days.
Studying the five-minute chart last will then allow you to find out the prevailing buy and ask prices, as well as other details you might want to figure out, like the market's behavior at the start of today's trade. From the five minute chart you can also weed out minor trends based on present occurences.
Of course, the above only scratches the surface as to what you should look for in futures charts. But, at least, they will give you an idea what to watch out for to make sure that the rest of your interpreting session goes on smoothly. Read up more literature on the subject to gain more information.
Futures Trading News
Crude Oil Falls After US Service-Industries Report Dims Economic Outlook - Bloomberg
 Kansas City Star | Crude Oil Falls After US Service-Industries Report Dims Economic Outlook Bloomberg Futures slipped 0.8 percent this week. There will be no floor trading on the Nymex on Sept. 6 because of the US Labor Day holiday, and all electronic trades ... Oil Softens as Earl Weakens OIL FUTURES: Crude Oil Settles Lower As Economic Data Loom Oil falls below $75 ahead of US jobs report |
US CFTC Data: Specs Accts Add to Euro Shorts, Trim Yen Longs - IMarketnews.com
 Reuters India | US CFTC Data: Specs Accts Add to Euro Shorts, Trim Yen Longs IMarketnews.com ... positions and trimmed their net yen long positions as per August 31, according to data released by the US Commodity Futures Trading Commission Friday. ... Speculators trim bets against US dollar - CFTC Large spec longs surge in CBOT corn-CFTC Flash crash probe plays down quote-stuffing |
NYMEX-Crude choppy after bounce up on jobs report - Reuters
NYMEX-Crude choppy after bounce up on jobs report Reuters Commodities Futures Trading Commission positions data at 3:30 pm EDT (1930 GMT) on Friday. 9:42 LAST NET PCT LOW HIGH CURRENT DAY AGO. US crude futures drop $1 on weak ISM data US crude futures turn positive after jobs report US crude up on oil platform fire, Wall St rise |
CFTC proposal to gather more data a burden: FIA - Reuters
CFTC proposal to gather more data a burden: FIA Reuters The association, which represents futures dealers, investors and exchanges, said the Commodity Futures Trading Commission should postpone implementing the ... CFTC's Retail Currency Rules Back Off Strictest Leverage CFTC Issues New Forex Trading Rules Backlash prompts rethink on forex leverage |
Singapore Futures Trading Competition Heats Up - Wall Street Journal
 AsiaOne | Singapore Futures Trading Competition Heats Up Wall Street Journal ... Exchange and a rival's announcement that it will introduce metals-futures contracts highlight the inroads futures trading is making in Southeast Asia. ... Singapore Exchange Proposes Copper, Aluminum Futures Based on LME Prices A global story starts in Singapore SMX goes live, targets 5% derivatives share in Asia |