In This Issue
Special Feature: Using Tick Charts and Oscillators for Day-Trading
Economic Reports and Expiration Notices
by Ilan Levy-Mayer, Vice President of Cannon Trading and CTA at Levex.net
There is no perfect way to day-trade, but there are different techniques that can work well in different market environments. In this week's short educational feature, I will touch upon one method you may want to add to your trading arsenal: using tick charts and oscillators.
Please note: using tick charts and oscillators works better on choppy, two sided ways, but it is not recommended when the market has a strong trend.
Basic Principles of Using Tick Charts and Oscillators
Using a tick chart rather than a time chart.
I prefer tick charts when day-trading shorter time frames because tick charts include market volume. If you are using a 5 minute chart, for example, you may get signals simply because time has passed and certain indicators you are using adopt certain values. But at times where there is a lot of movement in the market, you won't have to wait until your time frame bar closes to get your signal, and volume becomes a bigger and more important part of your trading decision.
About Tick Charts
Tick bars are built based on volume, either tick or actual volume when available, and time is not a factor. Each bar in a Constant Volume Bar chart contains a specified volume level that is reached by accumulating the volume of each of the underlying bars. When that volume level is reached, the next Constant Volume Bar begins to accumulate volume from the underlying bars. For intraday charts, tick volume is used to determine the Constant Volume Bars.
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Disclaimer:
Trading commodity futures and options involves substantial risk of loss. The recommendations contained in this letter is of opinion only and does not guarantee any profits. These are risky markets and only risk capital should be used. Past performances are not necessarily indicative of future results. This is not a solicitation of any order to buy or sell, but a current futures market view provided by Cannon Trading Inc. Any statement of facts herein contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgment in trading!
Source: Moore Research Center, Inc.
| Date | Reports | Expiration & Notice Dates |
|---|---|---|
| 04/10 Thu |
7:30 AM CDT - Trade Balance(Feb)
7:30 AM CDT - USDA Weekly Export Sales 7:30 AM CDT - Initial Claims-Weekly 9:30 AM CDT - EIA Gas Storage 1:00 PM CDT - Treasury Budget(Mar) 3:30 PM CDT - Money Supply |
FN: Live Cattle(Apr)
|
| 04/11 Fri |
7:30 AM CDT - Export & Import Prices(Mar)
7:30 AM CDT - Dairy Products Prices 9:00 AM CDT - Michigan Sentiment-Prelim(Apr) |
LT: Apr CRB Index(ICE)
Apr Eurodollar Options(CME) Apr CRB Index Options(ICE) May Sugar Options(ICE) May Coffee Options(ICE) May Cotton Options(ICE) |
| 04/14 Mon |
7:30 AM CDT - Retail Sales(Mar) 9:00 AM CDT - Business Inventories(Feb) |
LT: Apr Lean Hog Options(CME)
Apr Lean Hogs(CME) Apr LIBOR(CME) Apr LIBOR Options(CME) Apr US T-Bills(CME) Apr Eurodollar(CME) |
| 04/15 Tue |
7:30 AM CDT - PPI & Core PPI(Mar) 7:30 AM CDT - NY Empire State Index(Apr) 8:00 AM CDT - Net Foreign Purchases(Feb) |
LT: Apr GSCI(CME)
|
| 04/16 Wed |
7:30 AM CDT - CPI & Core CPI(Mar) 7:30 AM CDT - Housing Starts & Building Permits(Mar) 8:15 AM CDT - Industrial Prod & Capacity Util(Mar) 9:30 AM CDT - API & DOE Energy Stats 1:00 PM CDT - Fed's Beige Book |
LT: May Platinum Options(NYM)
|
| 04/17 Thu |
7:30 AM CDT - USDA Weekly Export Sales
7:30 AM CDT - Initial Claims-Weekly 9:00 AM CDT - Leading Indicators(Mar) 9:00 AM CDT - Philadelphia Fed(Apr) 9:30 AM CDT - EIA Gas Storage 3:30 PM CDT - Money Supply |
FN: May Cocoa(ICE)
May Crude Oil Options(NYM) |
* Please note that the information contained in this letter is intended for clients, prospective clients, and audiences who have a basic understanding, familiarity, and interest in the futures markets.
** The material contained in this letter is of opinion only and does not guarantee any profits. These are risky markets and only risk capital should be used. Past performances are not necessarily indicative of future results.
*** This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts herein contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgment in trading!