In the Future Segment how to trade with an edge?

The Futures segment is the best segment to trade in Indian stock market. There are opportunities to trade in the futures contract of stocks, commodities as well as currencies. If you want to trade effectively in the stock market futures segment, you can do so by trading on the basis of advice of advisory firms in the form of Stock Future Tips.

There are many strategies and systems, which can be followed to trade with an edge in the futures segment. The best advantage of the futures segment is that one can sell as well as buy the lots of futures contracts and keep them on a delivery basis.

There are many strategies to trade effectively in the Futures segment, and we will discuss some of them here. One can use Technical Analysis to anticipate the price movements in the futures market. In technical analysis, the charts of price versus time are plotted and analyzed. The charts are plotted with different time frames. One can plot charts of 1 min, 5 min, 15 Min, 1 Hr, 4 Hr and 1 Day.

The studies of technical analysis are based on the historical price movements as well as on the notion that the prices move in trends. There are majorly three types of trends, the uptrend, the downtrend and the sideways trend. If it is anticipated that an uptrend will follow, one can open the buy position. Similarly, one can open the sell position, if a down trend is anticipated.

The indicators like moving averages and oscillators like RSI play a very important role in anticipating the price movement in the Future’s Segment. The moving averages are the lagging indicators which are helpful in showing current trend. The oscillators are the indicators, which are useful in showing the trend reversals.

There are over bought as well as oversold levels and the value of the indicator oscillates between the overbought and oversold levels. One can open a sell position if the market is overbought. Similarly one can open the buy position in case the market is oversold. These tactics can help to anticipate the price movements which can be very beneficial.

There are other strategies like moving average crossover strategies as well as first hour strategies, which are very effective in earning profits from the futures market. In the moving average crossover strategy the crossover of two moving averages is seen as a signal for reversal of trend. In the first hour trading strategy the high and low of first hour is marked and orders are placed on the breakout of these levels.

One another way to trade in the futures segment is to trade on the basis of Stock Future Tips from advisory firms like TradeNexa. One is advised to follow proper stop-loss while following these tips.