With ATR on Friday being close to a low, and with fridays candle
being an inside candle, I am going to place a bracket trade 3 ticks
on either side of the high and low of Fridays candle. At the same time
I am anticipating the ATR to expand.
This is part 2 of a post I did in September 2013. Nothing has changed, really. The same MACD signals produce good profits. Sugar futures are traded on the ICE exchange and any futures brokes can give you access.
The margin requirement is $950. When MACD crosses positive on the daily I plan to go long.
The blue line on the chart are where the Stochastics crossed after being in oversold territory.
However it is noteworthy that while the stochastics plunged, price held up, only falling 5-6 points.
This could be a bull flag, or the stochastics could imbed in theoversold area while price
continues to fall. I would wait to see if price closes above the 13 MA (shown).
Bulls and bears want (IMO) a retrace up to 2050. Bears want to go short
at a higher price and bulls want to break through the high from earlier
this month. I will be glued to the 30 min and 5 min charts looking for longs.
Looking at where the weekly low was when MACD crossed negative
and seeing how many points later the YM finally hit bottom, we get some
consistency, and an average of -588 points left before the bottom is reached.
It's like a submarine that suddenly fills it's ballast tanks, weighing it down
(MACD crossing neg) and trying to figure how deep it will sink.......