spread trading

[savcty]

What would be considered top 3 indicators for spread trades when looking at the beginning of a trend or an abrupt change in spread based on a daily chart?

 

[-oo0(GoldTrader)]

[FONT=&quot] A seasonal chart

What would be considered top 3 indicators for spread trades when looking at the beginning of a trend or an abrupt change in spread based on a daily chart?

If you want to know when the trend is going to change, before the trend changes, and its likelihood of continuing, you will need a seasonal chart.[/FONT]

 

[tomorton]

What would be considered top 3 indicators for spread trades when looking at the beginning of a trend or an abrupt change in spread based on a daily chart?

After my last month's miserable performance, the simplest would be to go short when I go long, or long when I go short.

 

[Aston1st]

[FONT=&quot] A seasonal chartIf you want to know when the trend is going to change, before the trend changes, and its likelihood of continuing, you will need a seasonal chart.[/FONT]

Gold Trader, that is a very interesting chart. Can this be found on E-signal ? If not where would be the right place to look ? Bloomberg or where?

I would very interested in your answers.

Thanks

 

[Molly20]

Wow !!! as usual a simple question...treated with arogance and ignorance,,can`t anybody give a straight forward helpful answer...

PLEASE....

 

[D70]

Molly20.....
It isnt a simple question!

But the top 3 indicators for a "change in spread trend" would probably be....>>
1. Divergence
2. RSI
3. Force Index

 

[Molly20]

Sorry you are right not a simple question....

 

[-oo0(GoldTrader)]

Re: Spread trading

Aloha Molly

Wow .. can’t anybody give a straightforward helpful answer...

Molly he only needs one thing. With it you can embellish all that you want. Without it you are lost. If you do not want to be lost you need a map. A seasonal chart is a map that tells you when to expect a turn and when you are off course.

at the beginning of a trend

If you cannot read charts directly like just about everyone except John Hill or Joe Ross. Then it may be useful to have an oscillator that will show you momentum. If you were tied up in the back seat and blindfolded. You might be able to tell when a turn is coming because the car will slow down before the turn. I use Stochastics for this but you should use whatever you are using now. Your first sign of a turn is decreasing momentum.

If you were in the trunk you could tell by which side you were rolling toward which way you are turning. Stochastics can also tell you that with great reliability because it compares the closing price, to its price range, to predict turning points. Whatever side of the price range it is bumping up against, is the resistance in that direction. Just as your rolling into the side of the trunk would tell you which way the car is turning.

So assuming you are reading a seasonal chart.
1. Momentum
2. Trend
3. Stops​

Trend: Once the trend has turned and you are in a seasonal window you may want something to confirm the ongoing trend. Trendlines are very simple and work great. But if you want to program it into numbers, you can use Macd. Macd uses moving averages and is excellent for following trends on stocks. It is to slow for futures.

Stops: You need to know if you are on course or not. Using parabolic as a trailing stop should keep you in the trade as well as confirm the trend shown on your seasonal chart.

[FONT=&quot]

​

[/FONT]Trading calendar seasonal spreads, are more profitable and easier than other methods. Many traders turn to spreads when they come back.

You are looking for a double bottom, at the seasonal window, followed by five waves and out. If it works out ok for you. Take the same trade at the same time next year.[FONT=&quot]

Gold Trader, that is a very interesting chart.

Aston please understand that this is a professional business. Would you want your doctor to only prescribe cures that he got as samples?
No, you cannot get professional research from a broker whose job it is to fleece you out of as much money as they can, as soon as they can. You cannot get it from the press, whose job it is to sell securities to the public whether they need them or not. You need someone who works for you. Look closely at the chart.

See also: Oscillators[/FONT]

 

[trader8686]

Does anyone here know of any FX Option Broker/ Trading Station that will allow me to place limit/pending orders with Delta or Strike number?

I have Core Option, but it is limit order by premium only, I had no idea to calculate premium, especially when the market is very volatile.