Currency Futures Trading

What a week for futures traders currency futures trading. We saw some currency futures continue to consolidate within technical formations, while others finally broke out of technical formations. We saw some currency futures like the Canadian Dollar drop into the traders abyss, while other markets like the Japanese Yen fail to break through an all time high. The question for currency traders now is simple, was there any technical clues that may give us an indication of direction in the coming week? Let’s take a closer look at the currency futures market and see what we can discover when applying technical analysis to the most aggressive markets in the world.

The weekly chart of the British Pound Futures (see chart below) shows that currency traders continued to vacillate between the 4-week moving average (red 1.5664) and the area around the last cycle low (1.5335) this week. Long-term Indicators are still bearish, though some Indicators are starting to signal potentially oversold market conditions.

The daily chart of the December 2011 British Pound Futures contract (see chart above) shows that the British Pound is trading within an Ascending Triangle (outlined in red) and finding technical support at and around the 5-day moving average (red – 1.5586) for the last four trading days. Also notice that there is Divergence within the Stochastic Indicator. Can the bulls hold the market above the 5-day moving average and push the market above the Ascending Triangle this coming week? Or will we see the bears make a play for the bottom of the Triangle and try push the market back down?

The weekly chart of the Canadian Dollar Futures (see chart below) looks like a fishing pole with the line submerged deep in the water. Futures traders appeared to have utilized the 4-week moving average as a launching pad to the downside and right now the target seems to be the last cycle low between .9361 and .9213 (light red rectangle). Once again long-term Indicators are bearish, but some Indicators are signaling potential oversold market conditions.

The daily chart of the December 2011 Canadian Dollar Futures contract (see chart above) shows that currency traders who were long early this week were able to pierce the 5-day moving average (.9670) for a quick second, but could not hold that line. The 5-day moving average becomes a potential pullback target, but still remains a significant area of technical resistance.

The weekly chart of the Euro Currency Futures (see chart below) shows that the 4-week moving average (red – 1.3578) is a significant area of technical resistance and an average the bulls have not been able to really get for almost the last two months. Technically there is nothing holding this market up, or areas of technical support until the lows around 1.2870. Long-term Indicators are still bearish, while just starting to possibly signal oversold conditions.

The daily chart of the December 2011 Euro Currency Futures contract (see chart above) shows a market trading within a downward channel (outlined in blue) and potentially poised to test the significant technical low of 1.3357. If currency traders can push the Euro Currency below this low, than how far and how fast the Euro Currency drops is anyone’s guess. There is still Stochastic Divergence, but the failure of the Euro Currency to hold above the 5-day moving average (red – 1.3528) makes that less technically significant, in my opinion.

The weekly chart of the Japanese Yen Futures (see chart below) shows that currency traders are still vacillating between the 4-week moving average (red – 1.2993) and the all time high (1.3173). Though in my technical opinion the close of Friday may give us some technical indication that the bulls are losing some technical momentum, being that the Japanese Yen closed below the 4-week moving average. The long-term Indicators are considerably bullish, though are definitely signaling overbought conditions in the Japanese Yen.

The daily chart of the December 2011 Japanese Yen Futures contract (see chart above) shows that the market broke through the bottom of a Descending Triangle (outlined in red) and also below the 25-day moving average (blue – 1.3022). This technical information coupled with the close below the 4-week moving average and we might see the market drop quick and hard for those brave and bold enough to trade the Japanese Yen.

A final thought about currency futures trading. These markets are the most aggressive markets in the world and can be very exciting to trade. Remember, these markets are very fluid and in my opinion currency traders who are the most agile have the best chance to succeed. Think like a sniper, picking your location to engage the enemy, then picking your target (long or short), and deciding at the final moment whether your best course of action is to execute or to wait for a better location or target. If you don’t have the time to do the detailed analysis, don’t hesitate to sign up for my free daily, strategic and timely analysis. Sign up today and get your first report tonight.

Yes, I would like up for free daily Currency Futures Trading Reports.

Opinions expressed are subject to change without notice. I make no promises or guarantees implied or otherwise that utilizing technical analysis in the futures market will result in profits or limited losses. There is significant risk of financial loss in trading futures; therefore you should carefully consider whether such an investment is right for you in light of your financial position. 

Futures traders who were long currency futures, specifically the British Pound, Canadian Dollar and Euro Currency futures faired well Tuesday. Futures traders were able to push through pivotal areas of technical resistance and are now testing pivotal areas of technical support. The question tonight is, can the bulls keep their momentum, or are the bears ready to repel Tuesday’s rally? Let’s take a closer look at the currency futures market and see what we can deduce when applying technical analysis.

The weekly chart of the British Pound futures (see chart above) shows that futures traders are currently testing the 4-week moving average (red – 1.5666), which I will consider a pivotal area of technical resistance. A failure to push the market through this area and we might see futures traders technically enticed to sell the British Pound.

The daily chart of the December 2011 British Pound futures contract (see chart above) shows that futures traders were able to push the market right through the 5-day moving average (red – 1.5504), which has been a pivotal area of technical resistance since this sell-off began. Also notice the Stochastic Divergence, which is another indication that at the very least the bears might be losing some technical downside momentum.

The weekly chart of the Canadian Dollar futures (see chart below) shows that futures traders pushed the market up, but were unable to get to the 4-week moving average (red – .9906). A failure to get above the 4-week moving average this week could signal technical weakness and a new round of selling.

The daily chart of the December 2011 Canadian Dollar futures contract (see chart above) clearly illustrates a run above the 5-day moving average (red – .9715). Also notice that the Canadian Dollar is back trading at the 5-day moving average, which may turn out to be a good gauge of technical strength tonight. If futures traders can hold this area, futures traders may have a shot at the 4-week moving average (.9906) this week.

The weekly chart of the Euro Currency futures (see chart below) shows that futures traders pierced the 4-week moving average (red – 1.3614), but failed to hold the market above this area. If futures traders can push above this area it may bring into play the 52-week moving average (green – 1.3937) as a potential upside target.

The daily chart of the December 2011 Euro Currency futures contract (see chart above) shows that futures traders were able to push the Euro Currency significantly above the 5-day moving average (red – 1.3514) today, but the market is now down 83 ticks and bears are testing the 5-day moving average to the downside. Notice that there is Stochastic Divergence, which is considered technically bullish. The question now is who wins the night?

The weekly chart of the Japanese Yen futures (see chart below) shows a market still vacillating between the top of a bull-flag technical formation (outlined in blue) and the all time high (1.3173). Notice that the Japanese Yen is finding technical support at the 4-week moving average (red – 1.3015), which I will utilize as a gauge of technical strength.

The daily chart of the December 2011 Japanese Yen futures contract (see chart above) shows the market trading within a ascending triangle. If the bulls are able to push the market through the top of this technical formation, we might see futures traders enticed to buy this breakout. A break below the 25-day moving average (blue – 1.3016) and futures traders might consider selling this market.

A final thought about currency futures trading. We our watching certain currency futures test pivotal areas of technical support. These areas tonight will be pivotal battle lines and possibly good gauges of technical strength and direction. Remember, currency futures trading isn’t for the meek or garden-variety-investor, but for those investors bold enough and daring enough to think outside the box. Good luck and good trading.

Opinions expressed are subject to change without notice. I make no promises or guarantees implied or otherwise that utilizing technical analysis in the futures market will result in profits or limited losses. There is significant risk of financial loss in trading futures; therefore you should carefully consider whether such an investment is right for you in light of your financial position. 

Technorati Tags: British Pound futures, Canadian Dollar futures, currency futures, Currency Futures Trading, Euro Currency futures, Futures Trading, Japanese Yen futures, Technical Analysis

Once again the currency futures market explodes with action Sunday evening. For futures traders currency futures trading the volatility is expected. Some currency futures markets have broken through significant areas of technical support, while other markets continue to test and tease traders at an all time high. The question for currency traders tonight is simple. Will the sell-offs in the British Pound, Canadian Dollar and Euro Currency continue? And will futures traders finally push the Japanese Yen above the all time high (1.3173) this week? Let’s take a closer look at the currency futures market and see what we can deduce when applying technical analysis.

The weekly chart of the British Pound futures (see chart below) clearly shows that the British Pound has picked up steam to the downside and even pierced the cycle low of 1.5335. The question for currency traders trading the British Pound is how far does this market drop?

The daily chart of the December 2011 British Pound futures contract (see chart above) shows that the bulls are close to testing the 5-day moving average (red – 1.5495), which has acted as a technical resistance area since this sell-off began last month. If futures traders can push above this average, we might see a quick and steep rally. Notice the potential Divergence within the Stochastic Indicator.

The weekly chart of the Canadian Dollar futures (see chart below) looks rather scary if you are long or thinking about getting long. Notice that there is almost 300 ticks to the next cycle low (light red rectangle). If the Canadian Dollar can find support the 4-week moving average (red – .9880) might be a potential upside target.

The daily chart of the Canadian Dollar futures contract (see chart above) shows the market in a steep decline. A close today back at the top one third of the bar (isolated pivot bar) and I would consider that technically bullish, at least over the short term. If you are a futures trader wanting to jump in on the downside train, you might want to see how the market trades near the 5-day moving average.

The weekly chart of the Euro Currency futures (see chart below) shows that the 4-week moving average (red – 1.3577) was again the area to short from. Also notice that futures traders were finally able to break below the bull-flag technical formation (outlined in blue). The question now is was this move technically significant, or just a way to take out weak longs?

The daily chart of the December 2011 Euro Currency futures contract (see chart above) shows that futures traders pierced the significant low of 1.3880, but were unable to keep the market below that area. You should also notice that there is possible Divergence and a close back toward the top of today’s bar and you might see this market pop hard.

The weekly chart of the Japanese Yen futures (see chart below) shows that futures traders are once again pushing the market higher from the 4-week moving average (red – 1.3024). This move back towards the all time high (1.3173) comes weeks after the Japanese Yen held above the 13-week moving average (blue – 1.2910).

The daily chart of the December 2011 Japanese Yen futures contract (see chart above) shows the Japanese Yen trading within a bear-flag technical formation (outlined in red). If futures traders can bust through 1.3180, then how far the Japanese Yen climbs is any ones guess. If futures traders are able to push the market back below the 5-day moving average (red – 1.3086), then we might see some technical selling.

A final thought about currency futures trading. Once again, in my opinion these are the most aggressive markets the world has come to know, so don’t get complacent. Study your charts, create trading ideas based on sound technical possibilities and execute. If you don’t have the time don’t hesitate to sign up for my free daily, strategic and timely analysis. Sign up today and get your first report tonight.

Yes, I would like up for free daily Currency Futures Trading Reports.

Opinions expressed are subject to change without notice. I make no promises or guarantees implied or otherwise that utilizing technical analysis in the futures market will result in profits or limited losses. There is significant risk of financial loss in trading futures; therefore you should carefully consider whether such an investment is right for you in light of your financial position. 

Technorati Tags: British Pound futures, Canadian Dollar futures, currency futures, Currency Futures Trading, Euro Currency futures, Futures Traders, Futures Trading, Japanese Yen futures, Technical Analysis

As futures traders waited for the news from the Fed the currency futures markets were rather quite, but then all of sudden the currency futures were moving. The British Pound and Canadian Dollar were the biggest losers, while the Japanese Yen in my opinion might turn out to be potentially the best trade set-up for longer-term trend traders. The question for futures traders now is where do these markets go from here? No one ever knows that answer, but let’s take a closer look at the currency futures market and see what we can deduce when applying technical analysis.

The weekly chart of the British Pound futures (see chart below) shows that the British Pound looks poised to test the next cycle low of 1.5335. Futures traders will notice that this last sell-off began in the vicinity of the 4-week moving average (red – 1.5822), which will be considered the first level of technical resistance on the weekly chart.

The daily chart of the December 2011 British Pound futures contract (see chart above) shows the hard drop today. Again futures traders should notice that the 5-day moving average (red – 1.5636) has acted as an area of technical resistance for most of this sell-off; therefore this average will be a pivotal area of technical resistance. I would also like to point out the potential divergence in the Stochastic Indicator, but the sell-off may not be over so the reading of the Stochastic could be premature.

The weekly chart of the Canadian Dollar futures (see chart below) clearly illustrates that the bears have blown through the pivotal technical low of .9980. Futures traders will also notice that on the weekly chart the next real cycle low is 500 ticks away; therefore be very careful of stepping in front of this potential train if your thinking long.

The daily chart of the December 2011 Canadian Dollar futures contract (see chart above) shows the once the market broke through an area I considered a significant area of technical support (green rectangle) the market collapsed. Once again, there is potential divergence in the Stochastic Indicator, which might be an opportunity for an aggressive bull trader.

The weekly chart of the Euro Currency futures (see chart below) clearly illustrates the market inched down, but is still holding above the bottom of a bull-flag technical formation (outlined in blue). Also notice that the 4-week moving average (red – 1.3791) will be a potential upside target if the bulls can hold the line.

The daily chart of the December 2011 Euro Currency futures contract (see chart above) shows that Euro Currency took out both the high and low of the week before closing 8 ticks down from Tuesday’s close. The question here is can the bulls keep the market above the pivotal technical low of 1.3501?

The weekly chart of the Japanese Yen futures (see chart below) shows that the market is trading near the lows of the week after breaking out of bull-flag technical formation (outlined in blue). If futures traders can push the market below the 4-week moving average (red – 1.3002), then it is possible we might see some technical selling at least over the short-term.

The daily chart of the December 2011 Japanese Yen futures contract (see chart above) shows that futures traders have been able to push this market back below the top of a bull-flag technical formation, and also were able to pierce the 5-day moving average (red – 1.3067). The failure of the Japanese Yen to push through the all-time high of 1.3173 after breaking out of a bull-flag formation might be considered technically bearish and an opportunity for aggressive bear traders.

A final thought about currency futures trading. Currency futures never disappoint in regard to volatility. These markets can definitely shake rattle and roll, so never let your guard down and always do your homework. If you don’t have the time don’t hesitate to sign up for my free daily, strategic and timely analysis. Sign up today and get your first report tonight.

Yes, I would like to sign up for my free daily Currency Futures Trading Report.

Opinions expressed are subject to change without notice. I make no promises or guarantees implied or otherwise that utilizing technical analysis in the futures market will result in profits or limited losses. There is significant risk of financial loss in trading futures; therefore you should carefully consider whether such an investment is right for you in light of your financial position.  

Technorati Tags: British Pound futures, Canadian Dollar futures, currency futures, Currency Futures Trading, Euro Currency futures, Futures Trading, Japanese Yen futures, Technical Analysis

As the midnight hour approaches here on the west coast the currency futures market are active as futures traders attempt to get a head start. Once again, these are the most aggressive markets the world has come to know and currency futures markets don’t sleep. So let us get to it and see what we can see when applying technical analysis in the currency futures market.

The weekly chart of the British Pound futures (see chart below) shows that the bears have made a move and are currently testing the 13-week moving average (blue – 1.6223). A break below this average and we might see sellers technically enticed to jump on the weakness.

The daily chart of the September 2011 British Pound futures contract (see chart above) clearly illustrates the momentum of the bears this week. Notice that futures traders have broken below the bear-flag technical formation (outlined in red) and coupled with a moving average crossover to the downside the bear might have the momentum. In my technical opinion I would pay particular attention to the area around the 75-day moving average (green – 1.6237).

The weekly chart of the Canadian Dollar (see chart above) shows that the bears defended the area around the 13-week moving average (blue – 1.0266) yesterday (8/31/11). The question for traders here is who wins this battle?

The daily chart of the September 2011 Canadian Dollar futures contract (see chart above) clearly illustrates the battle between the top of a descending triangle (outlined in red) and the 75-day moving average (green – 1.0266). Also notice that the 5-day moving average (red – 1.0201) has crossed above the 25-day moving average (blue – 1.0188), which may entice buyers into the market.

The weekly chart of the Euro Currency futures (see chart below) shows that the bears are again leaning on the Euro Currency futures. A break below the 4 (red – 1.4352) and 13 (blue – 1.4298) week moving average and futures traders might witness a quick and hard spike to the downside.

The daily chart of the September 2011 futures contract (see chart above) clearly shows that the bears have broken through the bottom of a bear-technical formation (outlined in red) and are now testing a pivotal area of technical support. If the bulls can’t hold the market above the 25 (blue – 1.4326) and 75 (green – 1.4294) day moving averages, then lookout bulls you may get slaughtered.

The weekly chart of the Japanese Yen futures (see chart below) continues to show futures traders vacillating at and around the 4-week moving average (red – 1.3037). This average may have some technical value on Friday’s close, because the close may help gauge technical strength in the upcoming week.

The daily chart of the September 2011 Japanese Yen futures contract (see chart above) shows that the bears were able to hold the line at the top of the bull-flag technical formation (outlined in blue). Also notice that the bears have been pretty active and were able for a moment to push the Japanese Yen below the 25-day moving average (blue – 1.2988). The question now is can the bears keep up the pressure, or will the bulls look to counter the early sell-off?

A final thought about currency futures trading. These markets can put you to sleep and then all of a sudden POW! So be careful, stay focused and remember you are not married to any futures trade. Good luck and good trading.

Opinions expressed are subject to change without notice. I make no promises or guarantees implied or otherwise that utilizing technical analysis in the futures market will result in profits or limited losses. There is significant risk of financial loss in trading futures; therefore you should carefully consider whether such an investment is right for you in light of your financial position.

Technorati Tags: British Pound futures, Canadian Dollar futures, currency futures, Currency Futures Trading, Euro Currency futures, Futures Trading, Japanese Yen futures, Technical Analysis

Futures traders are once again back at the front lines trading in the most aggressive markets the world has ever known. Futures traders appear to be selling the U.S. dollar across the board. The British Pound, Canadian Dollar and Euro Currency futures are all up and appear poised to possibly pop hard. The Japanese Yen is up, but barely holding above a pivotal area of technical support. The question now is can the bulls in these currency futures markets hold the early momentum, or will the bears look for an opportunity to counter? Let’s take a closer look at the currency futures market and see what we can determine when applying technical analysis.

The weekly chart of the British Pound futures (see chart below) shows that futures traders found technical support around the 13-week moving average (blue – 1.6235) last week and opened Sunday night pushing back up through the 4-week moving average (red – 1.6368). Notice that the British Pound is trading within a bull-flag technical formation (outlined in blue); which may give us some technical reference points.

The daily chart of the September 2011 British Pound futures contract (see chart above) clearly shows a credible technical bounce off the 75-day moving average (green – 1.6234). The question now is can the bulls hold the British Pound futures above the 5 (red – 1.6373) and 25-day (blue – 1.6361) moving averages, or will the moving average crossover trigger technical selling later today?

The weekly chart of the Canadian Dollar futures contracts (see chart below) clearly illustrates that the Canadian Dollar is finding technical support at and around the 52-week moving average (green – 1.0114). In my technical opinion as long as the Canadian Dollar holds above the 4 (red – 1.0138) and 52-week (green – 1.0114) moving averages, the bears will be on the defensive.

The daily chart of the September 2011 Canadian Dollar futures (see chart above) shows that the bulls are once again testing the top of a descending triangle, which is also in very close proximity to both the 25 (blue – 1.0227) and 75-day (green – 1.0268) moving averages. The area around the top of the descending triangle (green eclipse) will be a pivotal area of technical resistance.

The weekly chart of the Euro Currency futures (see chart below) clearly shows that the bulls have finally pushed through the bull-flag technical formation (outlined in blue) after having flirted with this area for the last two weeks. Futures traders should also notice that the 4-week moving average (red – 1.4405) has crossed above the 13-week moving average (blue – 1.4314), which is considered technically bullish. The question now is will futures traders technically be enticed to buy the Euro Currency futures?

The daily chart of the September 2011 Euro Currency futures contract (see chart above) shows that the bulls were able to pierce that last cycle high (1.4547), which technically changes the technical structure of the daily chart. The question now is can the bulls hold this early momentum, or will aggressive futures traders look to fade this rally?

The weekly chart of the Japanese Yen futures (see chart below) shows that the Japanese Yen pierced the 4-week moving average (red – 1.3050) last week, but the bears have failed to hold the market below this area. This piercing of the 4-week moving average may technically mean the Japanese Yen is losing some of its’ upward momentum, though a close below this average would be technically much more significant then a piercing.

The daily chart of the September 2011 Japanese Yen futures contract (see chart above) shows a pretty significant down move from the isolated spike high, but the bears were unable to hold on to the momentum. We still show divergence, though we might have already seen the sell-off. The 5-day moving average (red – 1.3004) might be a good gauge of technical momentum or technical strength this week.

Opinions expressed are subject to change without notice. I make no promises or guarantees implied or otherwise that utilizing technical analysis in the futures market will result in profits or limited losses. There is significant risk of financial loss in trading futures; therefore you should carefully consider whether such an investment is right for you in light of your financial position.

Technorati Tags: British Pound futures, Canadian Dollar futures, currency futures, Currency Futures Trading, Euro Currency futures, Futures Trading, Japanese Yen futures, Technical Analysis

Currency Futures can explode up or down in a quick second and for those commodity traders already trading currency futures you know exactly what I mean. In trading currency futures a commodity trader could see his or her good position turn into a bad position; in as long as it takes to refill a cup of coffee or take a quick call. The currency futures markets are for the boldest of commodity traders and are in my opinion potentially the most rewarding. Now understand this, if these markets offer the best potential then it’s probably easy to figure out that these currency markets are also the most risky markets.  So how do you as a commodity trader try and navigate these commodity markets? By utilizing strategic technical analysis in the currency futures market.

Technical Analysis encompasses a broad spectrum of trading tools, from simple moving averages, to more complex analytics such as FlowCharts and Market Profile. Now if you have been reading my blog you will notice that I utilize CQG as my charting software program and I believe that CQG has the best charting software available. CQG is an outstanding charting software program with many analytical tools, which lets me see the market in so many different ways over a multitude of time frames. I think of CQG as my window to the commodity markets and trading without CQG would be like driving a car without windows.

So, how do I utilize CQG’s charting software and how does it help me with my trading decisions in the currency futures market? As easy and concise as I can be; here is a very simple explanation on who I utiliize CQG to breakdown the currency futures market. I breakdown the currency futures market not only in time, but also by levels. I try to determine based on the analytical tools offered by CQG where I speculate technical resistance and support to be. From there I create trading ideas on how a currency market may hold or trade through an area or level within a specified time while always being mindful things can change very, very quickly. Remember, in my opinion trading is less about winning and more about keeping your losses tight, especially when a commodity trader is trading futures with less then twenty thousand U.S. Dollars.

So if you are having trouble navigating the currency futures market, which might mean your losses are to big, or you just can’t see the market the way you would like, or maybe you just don’t have the time to do the analysis, and or maybe you would just like a new perspective in the currency futures market. Then simply join me for a private presentation on how I may assist you in navigating the currency futures market. Act now and get my daily  detailed analysis, trading ideas and strategic perspective on the most aggressive markets in the world. Sign up now by simply following my link Private Presentation on Trading Currency Futures.

Opinions expressed are subject to change without notice. I make no promises or guarantees implied or otherwise that utilizing short-term trading strategies will result in profits or limited losses. There is significant risk of financial loss in trading futures; therefore you should carefully consider whether trading futures is right for you in light of your financial condition.

Technorati Tags: Best Charting Software, Charting Software, Commodity Markets, Commodity Traders, CQG, Currency Futrues Trading, currency futures, Flowcharts, futures markets, Futures Trading, Technical Analysis, Technical Analysis Futures, trading currency futures

Day Traders can utilize a multitude of trade triggers to enter and exit a market. Once such DAY TRADING STRATEGY is the use of short-term trading ranges. A futures day trader could fade a rally or buy into a sell-off utilizing a trading range to help determine possible entry points or stop locations. Every market in my opinion has it’s own DNA or particulars in the way it trades. So, when utilizing this kind of day trading strategy in one market, the particulars won’t necessarily transfer over to another market. This day trading strategy is applicable to all futures markets, but the exact particulars should be assessed and modified when appropriate.

What does it mean to fade a rally or buy into a sell-off? When fading a rally a day trader takes a position in the market looking for the market to reverse or sell-off. When buying into a rally a day trader takes a position in the market looking for the market to reverse or go up.

What is a Trading Range? Every market has an average trading range, which typically translates into a percentage. The trading range can vary depending on how much data is calculated. A range with fewer data points will be more volatile, while a trading range with larger amounts of data will have a smoother average of trading ranges. These ranges can then be applied to the market in such a way that it gives a futures day trader a statistical probability or chance of a certain outcome.

Here is an example of how a futures day trader day trading futures might utilize this day trading strategy (trading range) to enter, manage and or exit a market. Let’s imagine a futures market that traded within a 1% range, nearly 75% of time based on the last two years of data. A futures day trader could utilize this trading range to enter a short or long position at .95% of the market’s range. In this example a futures day trader is looking to fade a rally or buy into a sell-off and is speculating that 75 percent of the time the market will not trade outside a 1% range. This same futures day trader could place a stop one tenth of a percent above a 1% range, again utilizing the trading range in this particular example as a way to help manage the position. If the market were to trade outside of the 1% range, a stop would be triggered and the position exited.

Once again, the above illustration is an example of how a futures day trader day trading futures might utilize this type of day trading strategy (trading range) in a particular market to implement intra-day trades. This particular day trading strategy could also be combined with other day trading strategies as a way to enter, manage and exit positions. 

Remember, trading futures is not for the meek or garden-variety-investor, but for those individuals who are looking for aggressive alternatives. There is significant risk of financial loss in trading futures and you should carefully consider whether such an investment is right for you.

Day Trading Strategies encompass a multitude of sub categories in regard to day trading strategies such as, scalping; short-term trading and intra-day swing trades. All these sub categories of day trading strategies are based on the same fundamental idea, which is that all open trading positions will be closed by the end of the trading session. The actual particulars in regard to profit targets, risk parameters and time in the market vary significantly. Which intra-day strategy is best, or best for you? 

First let’s examine each day trading strategy, so that you can compare.

Scalping is referred to as an intra-day trading strategy that attempts to make money on small price changes and or the difference between the bids and offer. Traders who utilize this strategy will execute hundreds of trades a day trying to capitalize on split second changes in a futures price. Scalping techniques are often implemented by automated trading systems that utilize sophisticated mathematical calculations to enter, manage and exit positions very quickly. In my opinion, scalping the market in this manner is best left to those utilizing the automated trading systems that are utilizing algorithms to trade the futures market.

Short-Term Trading is an intra-day strategy that attempts to make money through larger price moves in the futures market. Once again, the actual particulars in regard to profit targets, risk parameters and time in the market can vary significantly from market to market when utilizing a short-term trading strategy. A short-term trader can also implement a multitude of trades within a trading session, but typically far less then a trader utilizing a scalping technique.

Intra-Day Swing Trades is an intra-day strategy that attempts to make money by capturing the meat of a move in the futures market. The particulars in regard to profit targets, risk parameters and time in the market will not only vary significantly from market to market, but will vary from day to day in the same market based on market conditions. This day trading strategy will trade the least amount of contracts on a daily basis, but can still offer a multitude of trades within a trading session.

Utilizing anyone of these day trading strategies is just one piece of the day trading process and each strategy has many trade triggers, money management techniques an exit strategies that can be applied to each day trading strategy. I will offer different day trading techniques with an assortment of trade triggers, money management ideas and exit strategies that can be utilized or modified, depending on a traders objectives, risk tolerance and timing restrictions. Once again, I do not guarantee or promise implied or otherwise that utilizing any day trading strategy will result in profits or limited losses.

There is significant risk of financial loss when trading futures and trading futures is not suitable for everyone. Therefore, you should carefully consider whether such an investment is right for you in light of your financial position.