Trading Charts

In trading there are several choices for trading charts, as every trader is different, it’s like a car, some like Ford products, others GM, and then others like the foreign cars, like Toyota, Honda, and Mercedes Benz. So that’s why trading platforms give you alternatives in charts. Now you can use any of the following, tick, minute, range, line, bar, candle and Renko charts. Futures trade on the New York Mercantile Exchange (NYMEX) which is a commodity futures exchange owned and operated by the CME Group of Chicago.

Now charts can be used for different things, you may use one chart style for trading and another for support and resistance.  Like the charts below is a 5-minute chart, with ES, NQ, and CL on it. I use it to monitor the overall trend and look at it for support and resistance. You can see the daily highs, and lows, and use all this information in your trading. We are using a 5-minute candle chart with our NinjaTrader Platform and can see all three markets that we trade. So if one market is flat we can trade the others.

Trading123 Charts

  • Here we are using a five-minute chart in NinjaTrader 8 to identify chart patterns and support and resistance.  Traders need to learn chart patterns as they repeat each day, and should be a part of traders toolset.
  • These two websites have plenty of info on chart patterns so view them.

Technical Analysis: Chart Patterns

Stock Charts: Chart Patterns 

  • ES Breakout: In the chart above the ES is forming a wedge and breaks out, you draw a line at resistance, breaks above long, it will usually be followed by above average. As volume plays a price in moving the price action.
  • NQ chart has hit resistance and has the falling off the cliff look. Breaks support and sell off nicely for a nice short. And you always look left for support and it comes down to it and price holds, so time to take profits.
  • CL chart is chop, tight range, no breakouts, sideways action, starting at 9:00 am eastern time, so this market I would avoid.
  • So trading is all about learning how to identify support and resistance. Visit the link for more info.

As the chart shows below this was a very good day for trading, just after the new year. All three markets that I monitor broke out and moved higher. Trading one of these moves would have had a nice day of gains.

  • ES Breakout over resistance good for 6 to 9 points
  • ES Breakout in afternoon good for few points
  • NQ Breakout in am good for 30 to 40 points
  • NQ Breakout in afternoon few more points
  • CL Breakout over 61 good for 20 to 40 ticks
  • CL trade on 2 contracts would have had nice gains

automated trading

Trend Line Break and Wedge

In the chart below of the ES, market moves up and then finally peaks.  I have been trading for 20 years and I can see the patterns without drawing the lines on the chart, it comes with experience. So the ES gets a Trend Line Break and price moves lower.  You need to pay attention to the size of the candle bars, larger the bar, more sellers there are. Here we have some selling and buying, so not a hard sell-off, and price moves back up. On this move down, I would look to get 4 to 8 tick profits due to a tight range. So you can see how important your trading charts are.

NQ Trend Line Break

NQ sold off at the open, found support, and rallied back up to form a Lower High, which is reversal sign. So no more buyers, and sell off back down it goes to the previous support area. So again watching the size of the candles this was a slow sell-off that went to support, time to cover.

Wedge Breakout

Crude oil slowly moved lower in the first hour of trading, forming a wedge. Break of 61.70 and up we go. In trading it’s like playing poker, you want to wait for the market to show its hand. So really no need to trade the first fifteen minutes to half hour.  Wait for a pattern, trend break, or support and resistance and identify the trend. You have all day to trade, CL went up over 30 ticks on 2 contracts that some nice gains, that’s what you call a one in done trade. You made some nice gains, now come back the next day and do it again using your trading charts. And you can use these charts with are AutoMated Trading Systems.

trading charts