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What type of Trading Day is it? & Trading Levels 2.13.2019


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Trading 102: What type of Trading Day is it?
 
The strong contrast between the last few days speed and behavior of different markets across the board compared to what we witnessed in January, brought me to share this piece:
 
  • My opinion is that there are 3 main types of trading days.
 
1. Most common is two sided trading action with swings up and down - this type of trading day is most suitable for using support and resistance levels along with overbought /oversold indicators.
2. Strong trending day, mostly one directional - this type of trading day is the least common, many times will happen on Mondays and maybe 3-5 times a month at most - this type of trading day is most suitable for using ADX, MACD crossovers and pretty much looking for pullbacks to jump on the trend
3. Slow and/ or choppy trading day - this type of trading day is best suited for taking small profits from the market by looking at volume spikes, using stochastics as possible entry signals and usually wait for a pullback before jumping in.
 
  • Good question is how can one asses what type of trading day we will have while the market is still trading....I am doing some work about it and will be happy to hear feedback via email but here are some initial observations:
  1. Was the overnight session a wide, two sided trading range? If the answer is yes, good chances for similar trading day during the primary session ( primary session is when the cash/ stock market is open)
  2. Mondays have the highest chance for trending days
  3. The behavior of the first hour of trading can also suggests the type of action for the rest of the day.
  4. If the first 30 minutes have good volume, better chances for type 1 or type 2 trading days.
  5. low volume during first 30 minutes can suggest a choppy (type 3 trading day)
 
 
 
Feel free to reach out to your current Cannon broker or contact person if you like to expand on the topic.


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Futures Trading Levels

02-13-2018

 

 


Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.



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About the author


Ilan Levy-Mayer has been a commodities broker for over 15 years, and holds an MBA in Finance and Marketing from Hebrew University in Jerusalem. Ilan is currently the Vice President and a Senior Broker at Cannon Trading Company . He is also a CTA of Levex Capital Management and his daily blog was voted the #1 Futures Blog from Trader's Planet.

His experience in the industry dates from the beginning of online trading, and he has also developed several trading systems over the years. In addition, Ilan has written several articles about trading methods and trading psychology, and has been quoted and published several times in SFO magazine, Futures, and Bloomberg. He has been invited to speak at the Chicago Board of Trade, a significant distinction.

Ilan specializes in analyzing the markets based on timing methods, proprietary technical indicators, using support and resistance levels and looking at multiple time frames.

Take a step in the right direction and contact me today, Toll-Free: 800-454-9572 or direct: +310-859-9572. You may also directly e-mail me, Send mail.

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Disclaimer: This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts here in contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgement in trading. 

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