Articles

Trading against the trend is always something that can be fraught with danger. As the old saying goes, “The trend is your friend.” However, good profits can lie in identifying the end of major moves as well.

The USA Federal Reserve has made 17 consecutive .25% interests with the last resting level being 5.25%. There is possibly one more to go - who knows in this fickle world.

Inspired by a post in a discussion forum this week, I thought I would cover a few back testing methods. I want to say right up front that there are no wrongs or rights when it comes to back testing.

By now, it is no secret that one of the futures markets that I have been watching closely and periodically trading is the Coffee (KC-SpotV) market on the New York Board of Trade (NYBOT).

The concept of a security making a gap either up or down can be something that keeps traders awake at night. The good news for everyone is that 80% of gaps occur in the direction of the trend.