Good tools are critical to catching market signals if you're a technical trader. At the Farm Journal Media Marketing Rally in Chicago, several analysts shared their favorite marketing tools for knowing when to make a move.
"When I look at speculative or hedge, I look at timing of the market,” says Sue Martin, president and owner of Ag & Investment Services, Inc. "I have indicators that earmark times of the year for which I should pay attention. After that, I watch for trend following various moving averages and how the market is responding to them.”
Mike Florez, with Florez Trading, also uses timing cycles, but likes to incorporate various wave counts. "It's easy to look at wave counts,” Florez explains. "If the market has gone up 50 cents over a 10 day period, and then the market pulls back, it's very likely you are going to get a similar move on the next uptrend.”
Track how long a period of time the market has gone up, and to what degree it went up, Florez says. "You'll see symmetry in the market,” he adds.
Brian Basting, with Advance Trading, blends both fundamentals and technicals. "The underlying strength of our analysis is supply and demand, but we like to use the technicals for a stop or go sign,” Basting says. "When you reach extreme highs or lows is when you put more emphasis on technical signs.”
A simple tool is to watch a 50 day moving average, says Gregg Hunt, a senior trader with MF Global. "Watch that and it will keep you out of trouble,” Hunt says.
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