Track 'n Trade Futures End of Day
Long Term Charts
In this Track 'n Trade 5.0 Futures Trading Training video, I want to start by demonstrating to you how to utilize the Long Term Charts.
Now, in Track 'n Trade we have multiple views of the same chart. First of all, we can look at the Regular Contract View. Now, this is where you're going to want to do most of your work- is on the Regular Contract View.
Now, you can see over here we have four different buttons. Each indicating a different time frame for each chart. This is the contract that you're going to actually going to trade off of. So, this is the one you're going to be doing most of your work on. You'll notice that it has expiration dates on here, indicating that the contract is coming to an end, and this is where you need to get out of the market and roll over into another contract, if you're going to continue on the longer term trade. Notice that the red line is your expiration date, the yellow, this is your warning time. This is your last trading day. Then, of course, your purple line is the Options expiration date. Those are represented on the daily, regular Daily Contract Chart.
Now, the next step is the Long Term Daily Chart. You go to a Long Term Daily Chart, this is where we thread together all the contracts. If we go back to the normal Daily Chart, you'll notice that if we slide back in time, this contract eventually comes to an end. There is no more data, just the beginning of the contract. So, you'll see that's how far back this market started. This is November 2005, of course we're looking at the October 07 contract, which means that it expires in October of 07, but it started trading back in October of 2005.
If we slide this chart forward, you'll notice that there's a small amount of time, in which each contract trades and then it expires and somebody takes delivery of this contract.
Now, when we go to a Long Term Daily Chart, this chart can slide back in time, all the way back and it doesn't ever expire. The reason it doesn't expire is simply because we have......strung all these chart together. All the Daily Charts into one big Long Term Chart. Now, you don't trade off of this chart, because you can't do it that way. But what you do, is you use this for a long term trends, and just to see what a market does, over a long term period of time, on a Daily Chart.
Now, you can also see that view with a Weekly Chart. If you click on this one, we kind of scrunch it down and we make it so that each Price Bar represents one week. Okay? So, the Open High/Low Close for the week is each Price Bar. You can slide this time frame back, and you can see that it also, that it also goes all the way back and it's strung together. Again, you don't trade off of this one, but this is what you use for technical analysis. To help you know whether the market is in a higher region or in a low region. We can slide this all the way back to the beginning of time. All the way back to where the chart began.
Also, if we go to the next button, that takes us to the Monthly Chart, where each Price Bar is a representation of one month's time frame- Open High/Low Close for the month.
So, now we just slide this back, you can see that they overall a long term trend, of the chart is represented all the way back on this particular chart, until 1972. Looks like September 1st of 1972. Then, of course, we can click this button, and it takes us right back to the Daily Chart, which shows us the chart that we actually trade off of.
Now, if you want to see the Settings for the Long Term Charts. We come up here and we hit View, drop down Menu. Long Term Settings, and in here, this is where we can come in and we can decide what we want each particular type of Long Term Chart to look like.
So, the Daily Long Term Chart, we want to build the Long Term Charts, off of the front month data, which is usually the way that most people want to do it. Some people want to do it off the Contract Month Data. Contract Month Data, of course would mean that you would have January to January to January to January. Front Month means that every single month is represented.
We also have the ability of coming in and doing the same thing with the Weekly Charts. You could have Contract Month or Contract or Front Month Data. Also, on the Monthly Long Term Charts, you can have Front Month or Contract Month.
Now, you can have it read ahead, to the next contract month before the end of the current contract month. You can have it do that, and you can have it kind of ignore a number of certain days. The reason you might want to do that, it's going to clean up maybe some of your Long Term Charts.
I'll give you an example of what that means. What happens, is when we come into a Daily Chart, you'll notice that when we come in here, notice how the volume and the open interest drops off significantly, when we come close to the expiration of the contract. Well, if you want to cut that part off and not include that last, you know, maybe couple of weeks, where nobody is trading this contract, anymore- you want to cut that off on your Long Term Charts, that's how you would do that.
Those are your Long Term Chart capabilities within Track 'n Trade.