Here's my idea to go long on ZM1!. This is a 4-hour chart.
First, I always need 4 independent reasons to take a trade. They are as follows ...
- Is the price in the correct location? In general, I price must be in the bottom of a range for a long, and at the top of a range for a short.
2. Market Structure
- Is there a double bottom with a...
KEY LEVEL = 336.1
And so it begin, wave 3 that we all waiting for.
The attention is now focus to the downside.
For this wave 3 idea, the price shouldn't and have no business to go beyond our key level.
Keep an eye on this extraordinary extreme in the soy crush spread. This spread includes 3 futures: soybeans, soybean oil and soybean meal and to be exactly now it is time to sell this spread!
What do you need to do to sell this spread?
To sell this spread you have to make 3 transactions:
BUY 1 soybeans contract
SELL 1 soybean oil contract
SELL 1 soybean meal...
This very interesting soybean crush spread is very close to its extremes and we think it is a good idea to short this spread. To do this, you need to buy 1 contract in soybean meal, 1 contract in soybean oil and buy 1 contract of soybeans. Our target is the level of 130 and we are willing to sell one more spread at the level of 180.
This is a follow up to the previous post. Today's price action completely fills the gap. Price initially breaks the support line of the wedge pattern on the chart. Then you see price dropping down without any pullbacks or small rallies to fill the gap in the soybean meal market. Beautifully executed, beautifully accomplished.
Nice break out of the wedge. Be aware of any pullbacks, rallies and trading ranges on the way down. Remember gaps always fill at some point. On the chart you have an area where prices gapped up and caused a blank spot on the chart. Notice the place on the chart marked "Gap." That is the area that will fill. A short position could be considered from the current price.
As you can see this strategy works for commodities as well. You can see here though how having a strategy in place to maximise profits can make the difference between a highly profitable strategy and one which just ticks over. Cut losses short and let profits run.
Good luck !