This week I’ve had the pleasure of teaching the Professional Futures trader class in my hometown of London. As usual it’s been a productive time, working with the students and getting to grips at a more advanced level with the core strategy used by Online Trading Academy which recognizes institutional supply and demand levels low risk and high reward trading opportunities. We have just completed the fourth day of five where a small part of the curriculum focuses on the practical uses of technical indicators of a more conventional variety, as well as detailing the benefits of trading currency futures.
As you know from reading my articles, I’m not a huge fan of traditional technical tools like moving averages, oscillators, and trend lines and the main reason for this is simply because all technical indicators lag behind the actual price itself, giving you a late signal each and every time. On the other hand, the beauty of learning to understand true price action by using a simple rule-based foundation strategy, is that as an objective trader, you can get close to truly recognizing how the biggest banks and institutions make money in financial markets. And who would want to follow them? They understand like we do that price is basically the only leading indicator in existence and when a market speculator gets the right education and support in understanding how to read major imbalances between the willing buyers and sellers in the marketplace, they will finally see consistency in their results.
The simple fact is that hitting your goals in today’s markets, is much more easily achievable when you can learn to identify major market moves and turns in advance of them happening. Obviously with this in mind the majority of our classroom based curriculum and our online extended learning track programs also known as the XLT, focus purely on learning our patented core strategy first and foremost. However, as I was teaching today to my students, once a student has a solid grasp on the essentials of the foundation strategy, we can then choose to employ the use of certain technical indicators in the decision making process but only as a support tool and not a decision making tool. Today we spent a decent amount of time working with one of the most famous of all of the indicators, the Bollinger Bands and I thought it would be useful to share a snippet from the class in this article.
