The last couple of weeks have been very tough for the majority of the investors. The current light volume rallies that have taken place generally in oil, gold plus stocks have been producing mixed signals for the technical analysts. You should concentrate on the long-run intraday charts in order to avoid a huge draw down usually on your trading capital.
What do you mean by a long-run intraday chart? This is basically the 5 or 8 hour bar chart or candlestick.
Why must you make use of these long-run intraday charts rather than a daily scheduled chart? Thus, there are basically four main causes for this mentioned below:
1. Using the daily scheduled chart, you can compress this information that will show closing, opening, high and low prices. Whilst a five-hour future’s chart demonstrates you huge multi-intraday chart patterns, which majority of the dealers would never observe. Multi-intraday chart patterns not examined by an average investor have the higher chance of working in your privilege. These chart patterns are also much larger as compared to the just average intraday patterns. Keep in mind the larger the chart pattern the more possible profit will be there.
2. The longer time frames permit us to follow oil, gold and silver stock indexes each time you want to utilize the futures’ contracts. Consider about it… the regular trading hours are from 9:00am – 5pm ET just permits you to check 1/3rd of the price action every day.
3. The last and main reason you should use futures chart generally is for some volume readings. Futures charts show real levels of the volume that can be utilized for trading.
4. The last reason for the trading long-run intraday futures chart is as the cost of the underlying product or index moves accurate whilst the ETFs that attempt to shadow these trade products produce false breakouts as well as breakdowns on the daily basis.
Conclusion on the weekend gold, stocks and oil trend:
In brief, I feel the trading market is on the threshold of the strong move. The main trouble is that the price action, market response as well as economic news these all are generating mixed signals. Thus, the best position right away is in cash as well as if somewhat unfolds this coming week to our privilege, so it will be great.