Profit No Matter What

Friday Dec 11 was a slow day. I want to illustrate that you can still have gains on a quiet day. Let's look at the 240 Minute chart above. At 9AM we had a sell signal that developed overnight. We knew that the 1105 level would act as resistance going into the open.

Now looking at the 240 Minute at the end of the day we see that it did just what we thought it would. The resistance at 1105 kept a lid on things all day.

On the Daily chart above we see our buy signal holding up for a third day. The blue upward trendline is holding and we're poised for our Santa rally -- if we ever get some volume and Obama doesn't blow the country up we may slice through that 1128 level before year end.

This 4000 tick chart is fully articulated to help you identify each pivot.
Where we had unclear peaks or valley's in the FRO I labeled that area "NO TRADE" because we didn't have clarity. In spite of the day being slow we still had good opportunities to profit no matter what. This one chart alone can last you a month of study time combined with live chart watching and paper trading. It's all about building your sight vocabulary and formation recognition.

Now I suggest you print this chart out and finish the picture by drawing lines on the FRO and candle formations. Test yourself to see how your recognition skills and sight vocabulary are coming along. Don't peak until you're done. Count up the points in each move and multiply that number by $50 per point.

And remember, the best way to use this blog is to start with the February '09 post and work forward.

WARNING: Trading futures involves risk. You can lose all of your capital and more. Do not trade futures with real money until you have mastered paper trading and consulted with your financial adviser to see if trading is suitable for you. Past results are no guarantee of future performance.