Welcome to the TFC Commodity Trading Forum.
Please feel welcome to join in on these informative ongoing discussions about trading futures and commodities.

The Trading Forum is intended for the open discussion of commodities trading. The management of this Forum does not agree or disagree with the ideas exchanged, and does not exert editorial control over the message posted herein. Read and post at your own risk. The risk of loss in trading or commodities can be substantial. We discourage the use of this Forum to promote trading that is acknowledged to be risky. Please note: many links from the Forum lead to pages on other web sites. We cannot take responsibility for nor endorse the information presented on those sites.

TFC Commodity Trading Forum

Re: Cocoa buy
In Response To: Re: Cocoa buy ()

llouisv,

I know you directed your query to Kydaytrader and I hope you won't mind my butting in.

Your question jogged my memory back 13 years ago to a conversation I had with a fellow trader friend on about how funds use moving averages to decide when to enter/exit a position. Which is no big secrete or surprise but we wanted to figure out based on what we observed of volume price action and reports what MAs they used for CC. I think at the time we deduced 40 exponential MA and 45 xma. I think as a result he started using 65 xma.

I personally always used Pivit Point Support/Resistance (4 levels). I also liked keeping an eye on 10 day xma of Highs and 8 day xma of Lows, I remember they always worked really well in the sugar market probably better than in the cocoa market. And using candlesticks was/is absolutely mandatory for me.

I just remembered, I'd make fun of my friend because he also used 200 day xma for the what he called very broad brush strokes of the trend. It seems to me it would be simpler to just look for higher highs, higher lows for uptrend and lower highs lower lows for down trend but that's just me.

My main reason for responding to your post was really to ask why would you look to trade December CC for day or swing trading and not July with better volume? I can understand maybe position trading using Dec but July should be good to trade for a least another month. And why skip Sept? None of my business and I don't mean anything by asking, I was just curious.

And I hope if you find RSI and BBands work well in the CC market for your trading style you'll let us know.

A sincere prosperous trades to you!

KJB22