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 stop figure one sell high low place contract formed.

So when a high bar has been formed I place a stop one tick above the high of the high bar (in the FTSE I round this to the nearest point, so if the high is 4543 or 4543.5, I place a buy stop at 4544). When a low bar has been formed I place a stop to sell one tick below the low of the low bar. 55 I will take you through the first few trades in the FTSE on August 2002. Figure 32 In figure 32, the red bar is the first low bar. So once this bar has formed I place a sell stop to sell one contract at 4211. 9th 56 Figure 33 A couple of bars later a high bar is formed (red bar, figure 33), so I place an order to buy one contract for 4267 on stop. I currently do not have a position, but have both a buy and a sell stop in the market ready to get me in when the market makes a move. 57 Figure 34 A bar later the high bar is broken (figure 34) and I am now long one contract. I change my sell stop to 2 contracts, so that if it gets hit I will sell my current long contract and go short one contract. The price for the sell stop remains the same, as this is still the most recent low bar. 58 Figure 35 Now a new higher low bar has formed (red bar, figure 35) so I raise my sell stop to 4229, one tick below the low bar of 4230. 59 Figure 36 My sell stop has been hit and I am now short one contract. I place a buy stop for two contracts at 4271, one tick above the most recent high bar of 4270 (red bar figure 36). 60 Figure 37

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How To Trade The Futures Market

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