Futures Trading
BASIC THINGS 1) Basic Instructions
2) Discount Markets
2) Advanced
2) Volume Profiles
3) Trading Indicators
THE SYSTEM 1) Trading System
2)Long-Term analysis
3)Short-Term analysis
3) Trading Analysis
MARKET TIMING 1) Candlestick Charts
2) Candles Patterns
3) Chart Patterns
4) Continuation Patt.
E-Mini System
O/R System
Dow Futures
Forex systems
FX Introduction
COMMODITIES 1) Commodities
Commodity System
Oil Futures
MANAGEMENT (Risk, Mind & News) Risk Management
The Trader's Mindset
Market News
SIMULATOR Trading Simulator
FUTURES BROKERS 1)  What to look for
2) Futures Brokers
TimeFrames Analysis
"Super Tech Analysis"
CHARTS and QUOTES Charts and Quotes

In forex futures trading look at the "BIG PICTURE". That is what commodity forex online trading is all about

In forex futures trading look at the "BIG PICTURE". That is what commodity forex online trading or cash forex is all about. I use the same futures trading system we have talked about in Futures Trading How To, but with minor alterations. (Please check it out first if you haven't before reading the following techniques to learn currency trading).

Now, Why Why Why you might ask yourself…?!. Why Do I need to adjust the method when forex futures trading, I just do not want to think, I just want to learn currency trading!...

Well my friend, it is simply because this market is MUCH SLOWER than e-mini markets and oil markets, therefore, we need to do minor adjustments when commodity forex online trading or cash forex trading. We start from the Long-Term Participants view in the Auction process and continue down to the Short-Term Participants view.

This way we make sure that cash forex or commodity forex online trading becomes easy, not charts cluttered with indicators, which complicate us to learn currency trading.

Remember Supply and Demand determined by The Auction Process is the MOST important thing of all.

Let's number this adjustment we have to do to trade cash forex or when forex futures trading:

  • The 30 minute Time frame now becomes 60 Minute Time frame.
  • The 5 Minute Time frame now becomes the 10 Minute Time frame.
  • And Finally the 2 Minute Time frame becomes the 5 minutes Time frame.
  • We need to do this adjustments because in forex futures trading the "sessions" or "days" last almost 24Hr around the clock with good volume, therefore, this market moves much slowerrrr than the others. We might do 2 or 3 trades a day.

    Let's begin the steps to achieve forex futures trading efficiently.

  • Step 0:

    Open your Daily Chart of the product traded (Eur/Dollar for example).

    1. Open up your daily chart and look for the last low and last high (the places where it changed trend or rotated) that the market made.

    Step 0 helps us see (in case you do not know) how far to go back to analyze the market activity. And also help us see further back the market activity that developed over the last months in the forex markets. The "Big Picture" is called.

    forex systems

    The Circles represent the last lowest low from a pullback that The Market made and last highest high that The Market made before the change in trend. From the red circle to the green circle the last swing (last trend) is formed and therefore, the one, we will always use to analyze the cash and futures currency markets.

    Remember, when forex futures trading that the Last Swing is the last change in trend that The Market made in a daily and 60 minute chart . In the above chart in changed trend downtrend to uptrend (pullback) in the red circle. Then it changed from uptrend to downtrend (finished the move up) in the green circle.

  • Step 1

    1. Open up your 60 min chart
    2. Go back at least 1 month and a half, to 3 months. This ensures you cover the last swing.
  • forex futures trading

  • Step 2: (chart below)

    when commodity forex online trading or cash forex trading, take the area from the red circle to the green circle (last swing on daily chart of step 0) and mark up:

    1. The Highs and Lows (places where market turned, rotated or changed trend). (circles on the chart)
    2. Areas where price has bounced several times (squares on the chart).
    3. And gaps(number 1 and 2).

    forex futures trading

  • Step 3: (Same chart from above)

    Ok my dear friend as you remember from our Long-Term Participants View analysis of the system.

    Step 3 is not really a step either in forex futures trading, it is just to make us remember about those 2 questions.

    1. Where is the market trying to go (up, down, sideways ?).
    2. How good is it trying to go there (a fast move upwards, downwards, slow move?).

    This two questions are crucial since you should "try" to see, from a long term view, who is in control of the market.

    Are buyers in control or Sellers?. If we move uptrend then buyers (we have a "biased" towards buying), if we move downtrend then sellers (we have a "biased" towards selling).

    In the above 60 min chart and the one we analyze in step 2. The market is coming from a very steep uptrend and now The Market is probably going to move down to the Black thick line to "absorb" that movement.

    We can say that in the Long-Term View or other time frame activity buyers had a lot of power and now they are taking profits from that step move. We could expect a pullback or a "rotation" down to the Black thick line.

  • Now let's move into the Short-Term view of the market to assess more techniques for a correct cash or forex futures trading.

    Click here to learn more about the Short-Term participants view when forex futures trading

    Click here to go back to Forex systems from The Long-Term Participants view when forex futures trading

    Click here to go back to Futures trading How To

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