There is no shortage of participants in futures markets - from actual producers and hedgers to high-speed computers colocated at the exchanges scalping for ticks... and everywhere in between. Thinking about the market as a collection of these different players with different interests can help give you a leg up on the competition.
In this week's Trader Behavior, Senior Performance Coach John Hoagland and CVO Michael Patak talk about how they break down the market to help predict price movements.
For example, the two talk about the power of the prior day's settlement as a magnate for prices. They present a scenario where overnight traders push prices higher - getting long. If the prices don't follow through early in the U.S. session, the market has a tendency to move back to settlement as those traders get out of their positions.
Check it out and leave any feedback in the comments.
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