Pro Trade Report

Never in my life have I seen anything like the plethora of methods that are used in production for use in forecasting the prices of raw materials. There are literally hundreds of techniques and approaches. This chapter briefly enough, but a few.

Some of these are fairly standard and the author place an asterisk next to those he personally uses. Listed in this chapter, there are approximately thirty-six ways and means of forecasting prices. This does not take into consideration all the pieces of glorious wonderful little ahead through the revelation of P & L fix the course of technical analysis.

(The author is very pleased with P & L performance graphic, as it quantifies the dealer price action on a daily and intra-day basis. I know of no other system in which the activity specific to each day is more than a trend or congestion in which prices are negotiated. Activity every day through the use P & L Plot depicts the evolution of a trend or congestion, sometimes within a single day. )

However, this author is more irritated by those traders who are convinced that their average displacement, Figure, resistance index, oscillator volume, volume balance, weighted moving averages, god knows what else, – basic, cash – are the only system that is effective. And, that the system they use is the only one that will never be effective and they have no use for the volume, open interest, seasonal, basic, public opinion against the tide, the wave theory, point and figure, moving averages, oscillators, chart patterns, indices of the scale, either, and blindfolded to change someone else's approach. (There's I got that off my chest.)

Often these traders do not even use their own systems and seem at least to beat the market continuously. Assuming that the trader studied a course in technical analysis and with a business plan incorporating several methods of forecasting price and combines them so that can always trade the benefits of the market, then this operator is worthy of being heard. In the planning section, this author will outline its approach to the market square and you'll be surprised how flexible it is.

There are three basic methods for analyze the behavior of market prices of raw materials.

1. Fundamental
2. Mechanical
3. Technical

FUNDAMENTAL

Often, the market is totally contrary to the fundamental considerations due to technical factors and others. The fundamental operator is interested in long-term movements of prices and should be ready to wait it out. Fundamentalists May deny it, but there are simply too many factors to take external factors into account, as the natural response to fundamental influences, reflected in the day by day fluctuations. There is no need to search for the analysis. However, the basic underlying trend direction.

MECHANICAL

Mechanical methods use price and price alone to determine the action and this action does not require no action by the merchant. There are three mechanical methods.

1. Chart
2. Summaries computer
3. Moving Averages

Take a course in technical analysis will teach these rigid trading rules to abide and is usually based on mathematical formula to predict the time right to trade. The computer tells you what a mathematical formula think you should do. One of the beauties of the mechanical methods is that they can be back checked. Computer-oriented methods usually themselves bias towards the mathematical analysis of trends, using moving averages and other trading systems. The computer can be used as a card reader and can formulate and test any and all decision rules.

TECHNICAL

In recent decades, a large amount of work has been done to establish a means of technical tools – all in order to anticipate the futures price from trade statistics, such as price, volume, OI

The technical approach of the easiest to fall the most complex and esoteric in four large areas.

• 1) patterns on price charts
• 2) evolution of the following methods
• 3) the character Analysis of market
• 4) structural theories.

There are many different methods for mapping. Most Popular are:

• a. bar charts daily high / low / close
• b. point and figure method
• c. average Mobile closing

The list of approaches taken in the analysis technique can be cataloged by technical approaches following.

• 1) a tape or reading society
• 2) the price chart analysis – which consists of
• a. developments Price
• b. support and resistance
• c. Consolidation (continued inversion)
• d. Price and training habits
• e. measurement rules
• f. Wave theory
• 3) the volume and analysis of open positions
• 4) other technical indicators that are

In recent decades, a large amount of work has been done to establish a means of technical tools – all with the goal of price futures from anticipation of trade statistics, such as price, volume, OI

The technical approach of the easiest to fall the most complex and esoteric in four major areas.

• 1) the grounds on the price schedules
• 2) evolution of the following methods
• 3) the nature of the market analysis
• 4) theories structural.

There are many different methods for mapping. The most popular are:

• a. More high / low / close bar charts
• b. point and figure method
• c. moving average of closing prices

The lists of approaches to technical analysis can be categorized by the following technical approaches.

• 1) a band or a company reading
• 2) the price chart analysis – which consists of
• a. price developments
• b. support and resistance
• c. Consolidation (continued inversion)
• d. Price and training habits
• e. measurement rules
• f. Wave theory
• 3) the volume and analysis of open positions
• 4) other technical indicators are:
• a. measures the relative performance
• b. study the performance of periodic price
• c. opinion poll and contrary opinions

There will be more of that later.

The above material is excerpted from the book “How to Make Money in the Futures Market… And lots of it.” By Charles Drummond (Copyright © 1970 by Charles Drummond. All rights reserved).

Charles Drummond is a Canadian trader who has written nine books about trading and has created a method of technical analysis called “Drummond Geometry.” His biography and further information about his work can be found at the technical analysis course website. His complete body of work is contained on the technical analysis course site.