Emini Futures Training Is The Trend Going To Continue Or Stop?

So you’ve begun trading and you’ve come up with a stock trading strategy of your own . You have gone through emini futures and after careful consideration you have settled on trend trading as your preferred trading style .

Trend trading is an attractive strategy for sure . Look at a stock chart retrospectively and the trending patterns jump out at you . You salivate about catching a beginning trend and riding it through to its final conclusion many months down the road . Wealth beckons, success is on your doorstep !

Unforunately, in reality, trading isn’t that easy. You get in on a trend – maybe you are late or maybe you have managed to enter near the beginning of a trend , but you do make it on board . As your predictions begin coming true and you are in this trade, you get a small profit . But then there is a very strong day and the stock hits resistance and the market stops dead . You tell yourself there will be more and you couldn’t move everything in a day anyway and so you add to your position . Then the next day the market opens , goes nowhere for a while and then quickly heads south . Since you’ve added to the position you were in you are quickly back at break-even and once you have the orders in place, you have already lost money. What is the deal? How could you tell ahead of time that the trend was not going to continue and that you should have taken the profit when the market started strong and then paused ?

Here are some trading tips that will let you know when a trend is going to go on and when it’s going to stop . If you use the tips along with the technical analysis training you will be well ahead of the game .

First and most importantly : use higher time period charts to set your targets ; look for areas where resistance and support are logical to know when the market is going to stop or start.

If you are not sure how you can predict where support and resistance will exist in the future , or within your trading are unsure of how to coordinate your time frames , then take a quality emini futures course for some help . You’ll find Drummond Geometry to be a top option but a variety of valid schools of thought exist .

Another element that is needed is a tool with which to make judgments about the strength and robustness of a trend . A strong trend will break through resistance or support and when a point or resistance or support is hit by a weak trend it will go into congestion or stop or it will reverse and move in the opposite direction . If your analysis tool kit has the right tool you can predict the more probable action; without the right tool, you’ll be waiting tos ee what happens, and you have a high possibility of getting disappointed.

You need to use momentum tools to appropriately measure this and then apply them to a smaller timeframe then the one you are in … to make it plainif you are trading a daily chart , with your trades try to pick the day’s high or low, then you would be looking at an hourly or half-hour chart to give you support in your trading decisions intraday .

We’ll talk about this more in Part II of this emini futures series.

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