Friday, 16 January 2015

Indicator Y Long 2374 - Cut Loss Turn Sell

Here there are two issues to discuss, 25 points of rollover as assumed in previous post and change of contract month gap affecting technical trend indicators.

As readers traders can see when the long 2374 was initiated on March contract month which was the last day of 3rd active month yesterday and the very next day today we saw the 25 points gap of rollover, which we mentioned in previous post, helped triggering a stop and reverse trade signal much earlier than we thought.

It is the April contract month that are lower than March contract month by 25 points. If there is no change of contract month, there is no issue of 25 points that affected the stop and reverse trade signals.

Just say, long 2374 rollover 25 points to 2349, if readers traders have high cost of trading, it will be another issue and a painful day.

The cost of trading we mean is the brokerage. If readers traders initiated some positions in April 2349 when the March trade signal was triggered at 2374 yesterday, they could save some good brokerage for a good meal!

Now, the issue on 25 points trigger artificial stop and reverse trade signal. As for this case, we all know that if there is no change of contract month and 25 points, the stop and reverse trade signal may not be triggered so soon. Think about it.

For indicator Y, we just follow change of contract month. The stop and reverse sell trade signal was triggered in the afternoon trading sessions at 2331 which meant the long 2374 cut loss turned sell 2331 today with artificial loss of 43 points (instead if 18 points). However, we will take 43 points in our yearly performance for easy reference.

((FKLI long 1728.5 is holding on but its stop and reverse sell trade signal get higher))