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Cutting through the Noise – Analyzing Price Action Correctly

 

Over the past few months, we have looked into the different indicators and charting tools that help us better understand price action. Today, we are going to take a step back and focus on the purest form of price and chart analysis: Trend and Wave analysis.

We will explore how the formation of swing highs and swing lows and trend wave analysis can help traders understand the overall market context. Every good chart analysis should start with an examination of trend and wave analysis, and we will show you how you should approach it using the recent price action of Gold Futures and T-Bonds ( 30-Year-old) Futures.

 

The Basics of Trend Analysis

Before we get into price analysis and chart studies, let’s take a look at the fundamentals. Every chart and trend pattern, including

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Chart Analysis and News for the Futures Market: Week of 12-04-2016

 

After benefiting from the ‘Trump rally’ for three straight weeks, the markets experienced a slight correction last week across the different asset classes. Friday’s job data showed a mixed picture and doubts over the strength of the labor market persisted. Investors also assessed the likelihood for upcoming rate hikes during 2017, leading to the small turnaround. The following report is the opinion of Optimus Futures.

Technically, the S&P Emini is capped at 2210 and has been trading lower last week. For now, it has found support at the previous resistance at 2180. On a break of that level and additional selling, price could fall back into the range with the bottom at 2110 – however, it is too early to call such a short reversal given the strength we have

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Chart Analysis and News for the Futures Market: Week of 11/27/2016

 

Last week saw another strong, bullish, risk-on week across the different asset classes with the S&P Emini climbing to new all-time highs and closing above the 2200 mark. The post-election rally has been the primary driver for the past 3 weeks and investors keep piling into equities; about $1 Trillion has been added to equity values since the election. The market is still focusing on Trump’s plans to cut taxes and boost fiscal spending which will likely lead to an increase in corporate profits. The following analysis is the opinion of optimus Futures, LLC.

The Emini closed very bullish on Friday, all the way at the high of the candle signaling a lot of strength. Price is now moving into uncharted terrain which can bring difficulties if traders are looking

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How to Read Bull and Bear Market Phases – Accumulation, Participation & Distribution

 

Dow Theory is a cornerstone of price analysis and its principles have been time-tested over decades. An understanding of the three market phases and the trend cycle concepts within the Dow Theory can help traders make sense of the way price moves and shed new light on how bull and bear markets are created.

The Dow theory distinguishes between the accumulation phase, which is where the ‘smart money’ starts to accumulate positions very early on, and the public participation phase where the trend has become apparent to the ‘typical investor’ and retail traders. The third distribution phase is the final stage where the market tops and the smart money is unwinding their positions while the average investor is usually still adding to their positions. Let’s now take a closer look at

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Candlesticks vs. Line Graphs vs. Point and Figure – The Benefits of different Charting Methods

 

In order to make the best trading decisions and trade at your optimal level, you must choose your tools wisely. This involves understanding the differences and benefits of the various charting methods. In this article, we will explore the differences between candlestick charts, line graphs and point and figure charts and look at the advantages and disadvantages of each method and which trading style goes best with each chart.

 

Candlestick Charts

Many traders use Japanese candlesticks, bar charts, renko, etc. However, in our opinion, for many futures traders, Candlestick charts provide the most information out of any chart type. At the same time, it can also be overwhelming and confusing if a trader doesn’t know how to interpret and read the specific candle formation.   As a trader gains more real time screen

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