The following is a short extract from the course "How To Trade The Futures Market", please click here Trade Futures Course for full details on how to obtain the full text, futures trading simulator along with sample data and bonus trading ebooks package.

Find: Bar figure market cannot control price looking summary bars moments.

So if we are to look at a chart, made up of 5-minute bars, with or without volume, we are seeing a summary of what has happened. I think this is important to be aware of when looking at a chart, we are not looking at the market, we are looking at a summary of it. 33 Reading bars Let us look at an individual bar Figure 8 What can we learn from this single bar? Perhaps first we should consider what we cannot determine from this bar. At the precise moment this bar closed we cannot say who was in control. It could have been that in the closing moments of this bar the buyers drove the price from the low of 41 to the closing price of 53 (figure 9). Anyone watching the live market would have concluded at this time that the buyers had taken control of the market. 34 Figure 9 Or it could have been that in the last few moments of this bar the sellers had just forced the price from 65 down to 53 (figure 10) and they were clearly in control. Figure 10 We cannot tell which of these two situations occurred, or, in fact, whether another, different scenario was played out during this bar. All we have to work with is the information that the bar presents. 35 So what can we infer from this bar (figure 8)?

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How To Trade The Futures Market

For full details about this detailed course, which includes a futures trading simulator software package complete with some sample trading data, and free trading ebook package please click here Futures Trading Course

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