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 market figure reversal volume see resistance bars bearish before.

Here we see a bearish reversal bar with increased volume (figure 20). The market appears to have made a decisive upward thrust, but is clearly met with resistance. The strong bullish bar, four bars before the reversal bar, is accompanied by the highest volume, which suggests that this upward thrust may not be as decisive as it appears. After this bar the market trades in a narrow range before breaking to the high of 5334 where more selling resistance was uncovered and the bearish reversal bar was formed. It is easy to see why many traders would be trapped into buying as the market broke out of the top of the 44 trading range set earlier in the afternoon; but when you take into account volume, a different picture emerges. After the formation of the bearish reversal bar the market falls sharply away (figure 21). The first indication that the fall is abating comes in the bounce at 17:12 (red bar below) and again at 17:28 (final bar below), both reversal bars on higher volume. Figure 21 We see evidence here of support, but as 17:30 (16:30 UK) is effectively the close of the futures market (as it is the close of the cask market), I would not 45 open a new position. Interestingly though, the open the next day is at 5330 and the June FTSE goes on to make a morning high of 5345. 46 Example 3: Here is a more recent example. Figure 22 The market has fallen (figure 22) and in the last 2 bars we can see that the volume (trading activity) has increased significantly. There is clearly buying resistance (support) to the selling pressure. The next bar (figure 23) is an up bar

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How To Trade The Futures Market

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