Studying the strategies of futures trading based on technical analysis tools, recently I saw two interesting indicator, which accurately reflects the specifics of futures trading.
As mentioned before, strategies of Forex and futures is somewhat similar because the underlying asset is the same (referring to currency pairs), but there is some difference, which is the speed of response of the indicators. Take, for example, the same referendum in the UK and the fed: we all understand that in the short term, the dollar will go up. Because after yesterday’s fed decision (rate remained) the dollar somewhat subsided, however, the futures currency pair dollar/Euro has remained in trend as investors fear instability in the Eurozone.
Indicator for futures trading
Interesting for me indicators for trading futures – Super Scalping Future and Volume_from_Futures. About the first one I will tell more.
Super Scalping Future – a tool which has a rather complex structure, but is versatile enough both for Forex and for binary options or futures. The area of use – scalping tactics. Immediately warn that the use of the indicator gives false signals in the following cases:
- at the time of publication of fundamental news, important reports and political-economic solutions etc.);
- at the closing session;
- market with strong volatility.
In other cases, the indicator futures trading gives accurate signals I would recommend you hone in on a demo account (selecting the individual settings for the indicator for each currency pair). To further minimize risks, we suggest adding a few moving averages.
The initial conditions:
- currency pair – almost every (experiment);
- time interval – 5-15 minutes;
- lot size and stop loss setting should be such that in the event of a negative outcome, the loss amounted to no more than 5% of the deposit.
- two moving averages with parameters close and open with a period of (7);
- Awesome Oscillator (“Wonderful” oscillator ‘ I wrote a lot in the strategies section “Forex Strategies”);
- Super Scalping Future;
- THV Pivot (potential pivot points).
Conditions for opening a buy trade futures:
- formed a green arrow up;
- moving average (blue crosses the orange from the bottom up;
- the oscillator draws the green bar.
Once these conditions are met, the following moving enter the market. Stop-loss set in the minimum (local). Indicator for futures in conjunction with the sliding gives a great synergetic effect, drawing the exact point to enter the market.
Conditions to open the transaction for sale of futures:
- formed red arrow down;
- moving average (blue crosses the orange from the top down;
- the oscillator draws the red bar.
Stop-loss set at the nearest local maximum. The strategy is quite simple: the indicator for futures quite often shows good entry points, however, the space for optimization of the strategy of course remains. Beginners can practice while on this basis, professionals have to offer something interesting. If you like strategy, Express your opinion!