It’s all about capital preservation and creation. If we can see where the Dow Jones Futures will go by looking at a chart and getting our risk profile set up for it is critical. You can see that in my previous posts and charts that we’re not too far off from getting our levels correctly. You can take this and use it to either save any profitable positions you have from becoming losing ones. You’ll need to have these levels so that you can save your money.
Looking at the chart we can see a slight break out above the 12,900 mark…now the trick is determining if this is indeed a break out?
Typically most stock market technicians prefer to see at least two bars closed above the level to qualify it as break out. So this means tomorrow’s pen and close will let us now if we are going to challenge the next resistance of 13300.
So what it takes is just one day to see if you can move up your current stops or to close your open positions on what you deem the high of the day.
The Futures market can allow you a lot of liquidity to get in and out of positions and sometimes day trade for a few point scalp if you’re fortunate enough to be able to watch the market daily. Just make sure you don’t over trade and stay within your trading rules
So as you can see above you’ll always make money in the futures market if you’re able to get your levels correctly. We have been able to help our readers so far, Just don’t over trade and use your money management principles correctly.