Articles

Although many traders know how to use volume in their technical analysis of stocks, interpreting volume in the context of the futures market may require additional understanding because considerably less research has been conducted on the volume of futures than that of stocks. Here we take a general look at some of the things you should know when looking at volume in the futures market. Volume Reports and Liquidity The volume of each futures contract (where individual contracts specify standard delivery months) is widely reported along with the total volume of the market, or the aggregate volume of all individual contracts. These volume figures are reported one day after the trading day in question, but estimates are regularly posted...

Of all the facets of trading, the first that a new trader must learn before he can engage the markets with any degree of confidence is the identification of low risk entries on a price chart. Notice that not just any entry will do, only those offering the biggest reward for the least amount of loss potential. If you've ever read about or had the chance to chat with any successful trader, you will find one common thread: They all (without exception) have an edge based on low risk entries. What defines a low risk entry? I define it as the following: The price level where a trader can expose the least amount of capital to prove whether his edge will work. I tell students to look for these areas by identifying "the line in the sand" or...