Limit Up/Limit Down Trading Rule—Look At Cattle
TRADING THEORY—This is an outstanding rule to understand as when a market trades limit down such as what cotton did in today’s trading session that tells you there is a high probability that prices will open lower on the open in tomorrow’s trading session as buying limit down is a fool’s game.
Remember when a market closes limit down there is also the chance of opening limit down the next day as that situation occurs frequently as the volatility when that situation happens explodes as that generally happens off of some type of report.
Also the exact opposite happens when a commodity goes limit up then you would see a higher probability that the next day’s opening will be sharply higher, now it doesn’t have to close higher but it will open higher so never sell limit up and never buy limit down as that is extremely dangerous in the next day’s trading session.
If you are looking to contact Michael Seery (CTA—COMMODITY TRADING ADVISOR) at 1-630-408-3325 I will be more than happy to help you with your trading or visit www.seeryfutures.com
FREE TRIAL FOR THE LIMIT UP COMMODITY NEWSLETTER
If you’re looking to open a Trading Account click on this link www.admis.com
There is a substantial risk of loss in futures and futures options. Furthermore, Seery Futures is not responsible for the accuracy of the information contained on linked sites. Trading futures and options is Not appropriate for every investor.