Category: Money tips Release Date: 2006-03-01
1. For homeopathic trading operations are concerned, in January and February are often the busiest month, not only the volatility of the market particularly intense, even the price trend also seems unjustified rampant.
2. In February with strong fortifications bull market softened, taking a breather, ongoing fell short trend will be accelerated pace.
3. In the first two months, when the establishment of new short positions should be more careful, particularly in agricultural markets. If you get a buy signal, it will still operate, but to be confident that there will be no sell signal so strong, so that the scale of long positions should smaller.
4. Early start, you have to pay close attention to your daily chart, in the January to February's closing high prices at the level of drawing a straight line. This line is a very useful buying stop-loss point. Whether you want to create a new long positions, or covering do more to change. This price is likely to be very difficult to overcome the resistance point, many markets are hardly overstepped.
5. The market should have sufficient strength, that is 1,2 months beyond the closing price closing high, you will at this stop-loss points or more to buy. Moreover, Zhou revealed a strong closing price is more important. Not all markets have the ability to cross this level, so close to this price, they should go short, or else is scaling back in the sidelines.
6. But even if there is such a simple operation strategy, all the positions are still should use a reasonable stop-loss points to protect. According to the number of individuals can endure the loss of the amount set, you can press a certain percentage of deposit payable upon the set.
7. Each market has its unique seasonal characteristics, particularly related to supply and demand simply asked themselves. Cycle affect the futures price fluctuations in the seasonal price tendencies.
8. Gann (W. D. Gann) stressed the importance of futures trading in the seasonal factors. Seasonal price analysis process is a very powerful tool.
Between 1841 -1941 the seasonal trend of wheat.
Created by the lowest price per month Views:
January 2 times; February 7 times; March 12 times;
April 14 meeting; May 5 times; June 9 times;
July 6 times; August 16 times; September 18 times;
October 13 times; November 10 meeting; December 12 meeting.
Gann's analysis pointed out that in August, that is, after the harvest, the highest number of record lows. Recommendations in three prices rebounded in April, when to buy, as most of the head there in May. Then, if in May or early June to see the market is really strong, it should be left empty, waiting for the seasonal trend of the price into the August lows.
9. Bernstein (Jake Bernstein) July soybeans seasonal cycle:
In mid-February to July futures are due this period of time, seem to have quite a strong rising trend of the season. July contracts tend to approximate the high point of maturity. Appeared before the low end of the year and will be in January between the subject tests, a breakthrough in January to a high point, often lead to seasonal fluctuations.
10. Bernstein pointed out that, unfortunately, and really know how to reap from the seasonal study, the best interests of the very few traders. Speculators On a seasonal fluctuation, it is often just to set up positions for their own defense. If you own a seasonal position incompatible findings, he will everywhere to find reasons to explain why this phenomenon of differences and, finally, is to seasonal factors thrown to one side.
11. From a strategic point of view, seasonal considerations are technical traders toolbox inside a very important tool. It is not an isolated technology, but also not be used to replace a good system or other technical means. But it can be used to confirm or deny the theory of other technical operations in the absence of inspections related to the seasonal results of the study, I (Kroll) definitely do not rush the position long-term operation. I will not without first looking through the fishing information, it would excitedly ran to catch herring. February is not suitable for fishing mackerel!
