Trend For Trading On Monday, November 2, 2009

The trend trader for futures , present by www.patterntrapper.com which use pivot point analysis to entered and exit position. This tool should be used with other technical indicator to optimize your trading.

The Trend for Trading On Monday, Nov2,2009 indicated soybean, corn and wheat is bearish with selling signal but soy meal contract is bullish with buying singnal.

					Minor Trend	Major Trend	Trend Reading
INDICES	Close	Change	3x1	7x5

S&P 500 - Dec9	1033.00	− 28.50	1047.92	1050.33			Bearish
Dow Jones - Dec9	9664	− 239	9783	9774			Bearish
Nasdaq - Dec9	1665.50	− 42.00	1691.06	1700.92			Bearish
Russell - Dec9	561.80	− 14.70	570.86	576.53			Bearish

GRAINS

Corn - Dec9	366^0	− 13^4	371^4	376^6			Bearish
Wheat - Dec9	494^2	− 9^4	500^4	513^4			Bearish
Soybeans - Jan10	976^4	− 10^4	977^2	984^6			Bearish
Soybean Meal - Dec9	297.0	+ 1.7	293.5	295.4			Bullish
Soybean Oil - Dec9	36.40	− 1.12	36.96	36.99			Bearish

ENERGY

Crude Oil - Dec9	76.99	− 2.88	78.42	78.47			Bearish
Heating Oil - Dec9	2.0120	− 0.0667	2.0456	2.0517			Bearish
Natural Gas - Dec9	5.012	− 0.050	5.093	5.137			Bearish

CURRENCIES

US Dollar Index - Dec9

76.475

+ 0.410

76.361

76.183

Bullish

My comment: Soybean is bearish , with other indicator MACD show bearish divergence , moving average indicator is bear and Stochastic also bearish. Next week soybean price may open lower with downside support 963, 925 and major support 900. USD Index has reverse signal from bullish in trend analysis and MACD has bullish devergence, may USD change direction? That could pressure on commodity next week.

Pivot point Analysis explain by Joseph Skibinski:

Pivot Points offer the trader a method of determining support and resistance for a given time frame. Pivots can be used with any time frame, daily, weekly, monthly, even any intra-day chart. A common technique is to calculate Pivots for a variety of time frames using common levels as a way of developing confidence parameters. There are five basic parameters calculated in Pivot Point Analysis. They are the Pivot (P), 1st Resistance (R1), 2nd Resistance (R2), 1st Support (S1) and 2nd Support (S2).

These levels are used in much the same manner as you would trendline support and resistance levels. Many traders us the Pivot level as a trend indicator. Above P, they only go long. Below P, they only go short. Conversely, you can go long against S1 with your stop loss a few ticks below S2. You can go long above the Pivot or above R2 with an entrty stop. If your long against S! is successful, you can add to the position with a buy stop above the Pivot. Then, you can take partial profits with a limit at R2 and trail your protective stop on the remaining position for the ever elusive "Home Run" trade. The equations can be easily programmed into Excel and are often offered as canned indicators by most charting services. However, it's good to know what they represent. H, L and C represent the previous day's High, Low and Close, respectively. Here's the equations:

R2 = P + (R1 - S1)
R1 = (P x 2) - L
P = (H + L + C) / 3
S1 = (P x 2) - H
S2 = P - (R1 - S1)

Adjusted Pivots

Often a large gap open leaves Pivot numbers calculated on the previous day's actions fairly useless.
Many traders adjust their value for P as follows:

O = Today's Opening Price
P = O + (H + L + C) / 4