In my continuing quest of using price action and TA to find opportunities in the futures markets, I search through each futures product each day to see what the weekly charts look like. When I stumbled upon Wheat Futures, I realized that Wheat was forming a perfect cup and handle pattern on the chart. This was honestly pretty sweet because it was the first time I've found such a pattern on the chart. This is usually a very bullish signal. Although I cannot trade the futures directly on my paper trading account here, I am looking at the ETF equivalent, but haven't found that one yet.
Regardless of what the move does after this, it will provide a great data point when it comes to analyzing different chart patterns, such as the cup and handle.
As always, when entering a trade I'll look to risk no more than 1% of my capital, and look to take profits right around the 3:1 or 4:1 risk reward ratio.
All the best,
RC
Regardless of what the move does after this, it will provide a great data point when it comes to analyzing different chart patterns, such as the cup and handle.
As always, when entering a trade I'll look to risk no more than 1% of my capital, and look to take profits right around the 3:1 or 4:1 risk reward ratio.
All the best,
RC