Trading Oversold Futures | Futures Basics & Beyond
hello investors and welcome to our session here today so kind of a crazy market the last couple of days exhibiting some of those bipolar characteristics this morning up very strong yesterday going into the close down very strong had the same type of thing occur over the previous two days but overall the market has moved dramatically to the downside along with many of the futures in those different contracts does this represent some potential oversold opportunities if so how would we measure that and how would we proceed with that we'll take a look at that right after we run through our disclosures here and again you want to welcome early here to futures basics and beyond just a little bit of a heads up if you'd like to follow me on twitter my twitter handle is at krosc underscore tda and i post things on twitter related to this area as well as other areas of investing great to have barb armstrong over there in the chat window she's very knowledgeable in this area as well as many other areas of investing i encourage all of you to follow barbara on twitter as well i'm sure she'd be more than happy to send her twitter handle over to you over there in the chat window in wave disclosures here today just a reminder our content is intended for educational informational purposes only not investment advice or recommendation of any security strategy or account type futures and futures options trading services are provided by charles schwab futures forex llc we want to keep in mind that future accounts are not protected by the security investor protection corporation and futures and futures options trading does involve substantial risk which is not suitable for all investors spread straddles and other multi-leg option strategies can entail substantial transaction costs including multiple commissions also we use the paper money software application here do keep in mind that this is for educational purposes only any level of success we may have in that paper trading account isn't necessarily indicative of the success you have in your actual live trading account as market conditions do change continuously also investors while this webcast does discuss technical analysis other approaches including fundamental analysis may assert very different views and we also want to keep in mind that past performance of any security or strategy does not guarantee future results or success and in order to demonstrate the function of the platform we need to use actual symbol server td ameritrade does not make recommendations or determine the suitability of any security or strategy for individual traders any best decision you make in your software account is solely your responsibility let's talk a little bit about our agenda here today so with regards to the market moving down to the downside you know the market has been in a nice uptrend kind of going like this right and then the covet scare boy some huge days down like this and now we're kind of getting up day-down day update down day sort of this bipolar type of situation but because of the extent of this move to the downside we may want to look at some potential opportunities with regards to oversold contracts and one of the tools that's available to us to help us to do that is a market forecast tool so we'll start by discussing the market forecast tool what it is what it measures okay then we'll use that to identify some potential candidates and with regards to those potential candidates we'll also look at doing a doing some paper trades in relationship to those so with that in mind let's go ahead and get started i'm going to come over here and pull up the thinkorswim platform right here and here we have the here we have the the futures for the s p 500 and you can see here we are marching right along here creating these higher highs and higher lows and big move to the downside about two days of bipolar activity another big move to the downside now we have another day of bipolar activity we're going down the previous day then up very strong or another snapping back the next day now as far as these movements to the downside these can create overbought situations particularly when you're looking at indicators the indicator we're going to be using here today is the market forecast indicator right here this is a proprietary indicator that's available to you via the thinkorswim website and i'll show you how you can bring that up basically what it identifies it identify stocks that are that are overbought or oversold based on three different time frames and here on four slash ces you can see right here we have this little red dot up here that means the forward slash yes was over bought right here okay actually went up a little bit more before we had to move to the downside right here is another red dot this is indicating that the s p 500 was over was overbought you can see we kind of went sideways and we did have a significant move to the downside here we have overbought right here that preceded this little move to the downside and so on and so forth what we're looking at right now is pulling down here to see if we have an oversold situation well i'm not seeing an oversold situation here on the s p 500 however i did notice that on the russell if we pull up to the russell i've got two choices here on the wrestling go with the mini contractor and go with the micro contract we're going to use the micro contract because i think this is a better place particularly for those that are just beginning with futures so let's go ahead and click on this open up the micro contract and you'll notice on the micro contract we've got a little green dot down here what that green dot means is that we have an oversold situation using three different time frames in other words in other words we we are oversold based on a relatively short time period and that's free on our market forecast tool that's referred to as momentum that's basically the red line right here see that red line right here we call that our momentum line then we have the blue line right here we call that our our near term line and then we have the green line right here and we call that green line our intermediate line i'm just gonna i'm just abbreviating these so basically what does this mean well if the red line in other words the momentum line goes into the oversold area right here the expectation would be for it to snap out of that oversold area over the course of the next one to three days if it gets up here in the overbought area our expectation before to snap back down here again in the next one to three days so this is the most active one the near term line which is the blue line right here if this one comes down here and it gets oversold down here the expectation is for it to snap up to snap out of that zone somewhere in the neighborhood of about three to five days if we're using chart reach candlestick represents a day if we went to weeks and we'd be looking at things a little bit differently that's three to five days when the green line gets down here in the oversold area right here then we're looking for that to pop out somewhere in the neighborhood of about one to three weeks so the green line is the more is the more deliberate of these when i say pop out i mean pop out of that oversold zone and work your way up back up in here into the over bought zone so oversold back up here and overbought now depending on what the overall market is doing this green line can get locked in to these to the upper area or the lower area here and stay there for an extended period of time so if we're talking about just mark when the market's having like it's ordinary ebbs and flows like right here it's going up going down going up going down then we'd be looking at these time frames but if we're an extended trend like this we can see that the green line particularly can stay up here in the upper zone right here while the red line still goes down and makes some of these touches because it's more of a momentum line now when all three of these come down in here and all three of them are oversold that's referred to as a bullish cluster okay a bullish cluster basically what a bullish cluster means is all three of those are down in that oversold area so all three of them the expectation is for all three of them to move up out of that oversold area we'd anticipate the momentum line to break out first the near term line to break out second and the intermediate line to break out third would have all three of them indicating a potential break and a move to the upside so as investors when we see that oversold situations demonstrated by the market forecast line we may want to look at that as a potential indication of a significant move in the opposite direction now if we look at if if we look at if we just stay here with the russell right here we see we have this right here but in order to kind of give us an idea where the expectation should be one of the things we can do is we can look at it from a historical standpoint i'm just going to pop this little guy off here so let's let's how far back do we need to go to in order to identify some bullish clusters here on the russell right here this basically measure measuring the russell 2000 well right now we're looking at a chart goes back six months let's go back a little further let's come back and why don't we go back a couple of years see if we can catch something that way okay so we're back a couple of years you can see that we don't get these bullish clusters very often on the russell because we don't get that oversold that often we got more of these berries clusters okay we don't get bullish clusters very often but we do have bullish clusters over here so what we want to do here investors is we with in determining what we want to do when we have a bullish cluster on a particular futures contract we want to look at it from historical perspective we want to look at from historical perspective what type of an entry would have been legitimate and how much room would we have to give that underlying contract following the entry in order to give it some wiggle room to to move down before it continues to move up in a significant way so i'm going to zoom in here then on these on these two little bullish clusters right here i'm just going to come over here and highlight this little area right here i want you to notice a couple things one is down here at the bottom i'm going to bring this up to play down here at the bottom we have our average true range so we'll take this into consideration and then right up here here is a bullish cluster right here so here's a bullish cluster now one potential entry could be when we close above the high of the bullish cluster day we come down here we just follow along here did we get a close here no no no no no okay so we did we did get an entry based on this bullish cluster we did have it's not too surprising we had the momentum line break out we had the near term line break out the intermediate line pretty much stayed down in this level then right here we have another bullish cluster right here and then let's just say again hypothetically that our entry is when we trade above okay we could either we could either say that we trade above the high of the previous day or above the bullish cluster day okay but in either case it didn't happen here before we came back down here had another bullish cluster did we trade above it here no before we had another bullish cluster then we continue to move down in fact in all these situations after we got this bullish cluster we did not get an entry signal even if we were to say well looks like we possibly had a close above the high this day right here if we're saying we need to be above the high the bullish cluster day no entry yet right here we are right here and so on and so forth we're coming down well here's our bullish cluster day and there's the high so i'm just going to bring a price line across the top of that okay and i want to extend this over to the right extend to the right just to see at what point do we get a potential entry so our entry right here our entry if we're saying that we need to be above the high of the bullish cluster day our entry would have been right here okay so i'm going to grab a tool here and i just want to mark that entry here on our chart so we can see what occurred following our entry right there okay so there's our entry now i want to go and let's let's zoom out here a little bit okay now one of the things i noticed here is following our entry we did go down here we went down here before we engaged we had more of a significant move to the upside let's move out here a little bit further you can see that we actually you know we here we are right here we came down then we started to really engage and and start to move move significantly up up here to the upside so we know that we need to give it some room well how much room do we want to give it what we can do is we can look at the average true range on the date of our entry right here and see what that is i'm just going to note our average true range on the day of that is 64. okay also notice this investor we actually gave up a lot by saying that we had to be above the high of the cluster day we gave up a lot of movement here right so that could be that could be something else that we could possibly revisit maybe say we break above a resistance level in fact i'm looking down here and saying you know from a technician's standpoint we came down here and we bottomed out and we created this resistance level right here we could take the break out of that resistance level give it some room we would have caught more more of this move but let's go ahead let's let's stay with this for right now okay but i'd but but but i just i just wanted to identify there would be some other potential entries from a technician standpoint one would be a breakthrough this resistance level another would be we came up here created a high then we came up here off of a higher low and started to move up okay but i want to measure i want to come back in here to kind of get an idea how much room we want to give it no we if we entered here but we came down and we bottomed here before we had that significant move to the upside how much of it how much of a move was that in points right here that might give us an idea of how much room we want to give this so i'm going to come down here i'm going to grab a channel tool because this channel tool will measure how far we drop down below here before we engage moving back up here and getting getting engaged to have a nice significant run so i'm going to come over here and just click right here and then come down here and meet that so we are at 149.8 points i'm just going to say 150. it's 150 and our average true range was at 64.
so how much how much room if we're looking at this from a historical standpoint we'll come up here and we need to get 150 okay in fact i'm going to i'm going to i'm going to add a little bit to that i'm going to say 160. just give ourselves a little bit of room right i'm going to divide that by our average true range which at the time of entry was 64. that would suggest we need to go two and a half atrs with regards to giving it some room to move following the entry okay so what of what have we done up to this point investors we've identified the market forecast indicator and how to use it by the way i part of this will also be i want to send you out the link to also show you how to install i know many of you do know how to do that but i do notice we have some new folks here i want to welcome the new folks and i want to provide the link to them so they can load this up but what we've done is we've looked at the study okay we've identified what it does we've identified that we're at an oversold situation which creates a bullish cluster then we want to look at things from a historical standpoint because history is basically all we have so we want to look at a historical standpoint see okay what type of entry would have made sense from a historical standpoint and how much room would we need to give it from a historical standpoint now we'll go ahead and we'll use this to put together a paper trade is this a good paper trade well the answer to that is going to be in our trading journal after we've done several iterations of these type of trades okay so let's come back over here then to where we're currently at we'll we're here let's zoom in right here okay so there's our high right there here's here's our bullish cluster day if we want to enter in based on our high here and then we want to give it some room we want to go two and a half times the atr to give it some room to the downside so how could we put together an order of that nature well i'm going to roll over this just so i can get the high and the high point there is going to be 2 2 5 five point nine okay that's our high so we said that we wanted to be we wanted to be higher than that high will how much higher okay is it going to be one point is going to be two points well in order to maintain consistency we can use a percentage of the average true range to make that determination for purposes of our discussion here we'll go with you know it doesn't have to be a large amount okay but let's go with five percent of the average true range above that high point okay so let's grab this or grab calculator right here and our average true range right right now is at 54.73 so i'm going to go 54.73 i'm going to multiply that by .05
that gives us 2.73 and i'm going to add that to the high which was two two five five point nine and this will give us our entry point i'm going to jot this down two two five eight point i'm going to round that to 0.60 okay all righty so we've got that so i think we're ready now to put together to put together an order here using our market forecast so let's do this then we'll zoom out here you can see everything clearly we'll come in here and we'll open up the trade actually i'm going to go right i'm going to go right from the chart here that that that makes so i don't have to search all around here for the contract right here okay before i do though i do want to show you a nice a nice little enhancement that's occurred on the thinkorswim platform recently i believe it's an enhancement it was something that i didn't notice until last week but frequently in here we'll want to identify what the multiplier is here right and so to do that we'll come up here and we'll put futures here and then it'll give us our information here with regards multipliers this is forward slash m2k right here okay and this is the micro and we can see that the tick size on this is 0.1 and the tick value is 0.5 so how many ticks are there well um if we take one and we divided by 0.1
there's going to be 10 ticks right and each tick is 50 cents okay so i believe that's going to be five bucks right let's double check well and what i'm saying here is is based on that our multiplier then would be five dollars now we typically come in here and we will continue to do this because i think it's a good way to get a good understanding of tick size and tick value however there is now a shortcut that you can get get this a little bit quicker rather than do this and do the math you can come up here and come up here to analyze and come down here and choose fundamentals and right here there's our multiplier gives us our multiplier right there okay there's our tick value there's our tick size but rather than grab a calculator it gives our gives our multiplier right there so our multiplier on this is going to be five and that will be helpful to us when we're looking at our risk related to this so coming back over here then i'm going to do a right click and i'm going to choose by custom with stop and i'm going to collapse our left hand panel over here okay now our our order to buy we're going to make this a stop buy order which means that we want to buy this not now when it's down here we want to buy it as it's moving up and hits that trigger point that we were talking about so i'm going to come down here where it says limit and i'm going to change that to stop so now we have a buy stop order and this is where we're going to put in that price we want to be at which is 22 58 i hit my tab key to lock that in alright so that's our entry order then down here we have our stop order this is where we will put in our stop loss okay and we want to give it how much room do we want to give it we want to give it two and a half atrs of room i'm going to come down here i'm going to say good till cancel for our stop order and our atr was what let's come back over here and take a look at our atr on the chart our atr is currently it is 50 54.78 so we're going to come in here we're going to go 54.78 times 2.5 equals just going to jot this down let's just round it up to 137 to keep the math simple okay all right so if we're entering in here and we want our stop to be 136 137 below that then we can just come in here and do do our math we'll say 2 2 5 8 0.6 minus 137 equals 2121.6
we'll put it right in here and we'll put that in as 2121.60 and we have that as good till cancel so what is our theoretical risk on this trade then investors we came down below this by 137 points we can take 137 movement to the downside this is theoretical because we don't know exactly where that stop may trigger but we know that each one of these points is worth how much or it's worth our multiplier right so we do that we'll times that by five we've got 680 685 bucks so now that that is our theoretical risk it's theoretical in nature we're not sure exactly where we're going to get filled first of all on our with regards to our with regards to the entry on our order it's going to trigger when the price hits that point but it's going to trigger a market or to go out by that future we may pay a little bit more than what we're anticipating that's one thing and then also as the price is going down if our stock gets triggered as far as that price movement the downside if it's moving quickly we may not get filled at a point close to that in fact if it gaps down you know you know during during one of these during you know at the end of the day the future pauses for a second then it kicks back in gear over the weekend it pauses it pauses on friday night and it picks up on sunday night if we have gaps in those situations that that can totally throw off our stop losses so we want to keep that in mind when we're position sizing the stop losses tend to do a pretty good job but they're not going to be perfect okay so let's play the part of the investor that's okay with say was safe with say fifteen hundred dollars of risk so if we've got 685 here and i times that by two contracts that would mean we're about 1370 that would mean we'd be looking at about two contracts we'll go ahead and we'll do a contract here and a contract there it looks like we're ready to go now i'm tempted on our entry one right here to make this entry good till cancel you know give it give it today and and and maybe a couple of extra days in order to get filled in order to get above the high of that of that candle that we were looking at in fact i'm going to do that i'm going to come over here i'm going to change this from day to good till cancel i don't want to leave it in there indefinitely okay so i'm going to click on my gear here i'm going to submit it now okay but i want to cancel it we'll come in here we'll give it we'll give it all day today we'll give it all day tomorrow okay but friday as we're going into the close the market closes mountain time at 1400 hours so about five minutes before the close of regular hours if this isn't filled we'll go ahead and cancel at that time okay all right so let's let's i've got we've got our order right here let's go ahead and do a confirm and we're going to send this into our let's pull down here and find there's our futures basics and beyond and there she goes okay it's always it's always good to see this not get filled when you put in those conditional orders because where do we need to be we need to be above this high we're going to give it all of today we're going to give it all of tomorrow if we get above that then we'll have an order it will trigger and then we'll go ahead and follow up on it now for those of you that are new this market forecast study right here um is is available it's available on the thinkorswim platform but the format that it has on the thinkorswim platform is not very friendly okay it doesn't have the overbought areas like this it doesn't have the dots and the light but i can share this with you so that if you don't have it you can go ahead and load it up on your on your systems and to do that i'm going to come up here and click on studies and choose edit studies and then here's our market forecast i'm going to click on the little scroll right here i'm going to click on share and click on share here i'm going to collapse this by the way everything i just did you don't have to worry about any of that so so don't be concerned about it okay all right so i've got it then in my computer's memories what i'm going to do is i'm going to send it over in the chat window and by the way with regards to just a little bit of a heads up it's it is it's not guaranteed with regards to accuracy or time i'm also not recommending its use it's there for you to to try out so to speak if you find it beneficial great if not then that's okay as well each other in the chat window now those of you that are catching this on an archive recording i also want to also want to have it here for you as well because i appreciate you taking the time when you can to come in here and join this so i'm going to post it right up here on our chart and i'll show you all how to install it as well here and choose edit properties and i want to make this a darker color a darker color i'm going to go with 40 okay so here it is on the chart now just a little bit of a heads up when we're talking about these links you can use the entire link which is what i which is what i sent over there in the chat when it's also what we have up here on the charts you can use the entire link to incorporate these things however you don't need to use the entire link you can just use the digits and the letters that follow the final forward slash i believe that's usually going to be the last seven digits i'll show you how to do that okay so here we have it right here i'm going to do a right click on the out those of you that are catching this as an archive recording you can just you can just you can just note it it's 7 7 uppercase w uppercase v uppercase s lowercase z and the numeral nine okay we'll come over here i'm going to come in here for just a second because i want to copy just those seven digits right here again you can use the entire link or you can just use the seven digits but let me copy that i think i got that copied we'll see and then to install it just come up here where it says setup click on setup click on open shared item and paste it in here okay notice i just did our seven digits then click on preview when you click on preview you'll get a box right here that says import item as you definitely want to put a name in here otherwise it won't mean anything to you if you want to if you want to put market forecast kr version 2 you could do that which is what it is or if you just want to call it market forecast or give it any other name you want but you are going to want to give it a name so you'll be able to pull it up okay then after you give it a name after you put your name in here click on import and then after you've done that i'm not going to do it here because of course i already have it but after you've done that you click on import i'm going to go ahead and cancel mine here after you've done that when you want to pull it up as a study here on your chart just come up here to studies right here come down here and choose edit studies and over here in your studies it will be in here in alphabetical order under the name that you gave it for example if i start typing in market forecast right here market forecast this is it right here this one right here okay so that's it so if i want to add it i click right here and i choose add selected and that that's how i got it to come over here on my charts all right okay well let's see how we're doing so far with regards to what our agenda was what we wanted to do here so we wanted to discuss the market forecast so i think we did a good job of that we wanted to identify oversold contracts using the mark forecast so we'll look at one or two more because we still have some time here then we want to demonstrate how to enter paper trades on think or swim one other thing we probably want to do here is once we're in this thing where do we go from there right i mean i mean i've always said that the the easiest thing here is identifying entries the more difficult thing is identifying an exit so once we're in these type of oversold situations what do we do from there well i'm going to decrease the time frame on our chart here just so we can look at some technicals technicals for consideration we want to keep in mind that frequently when you're in this situation you are in a counter trend trade and the reason i say that is because notice right here on on the russell we came up here we created a high which is higher than this high we came off of a low which is higher than this low we came up here we created a higher high okay which is higher than this high then we came down here we got a little bit of a bounce here coming off of a higher low then we started to move up then we started to move down in moving down we broke down below this support level and this low okay then we continue to go down we broke down below this theoretical support level which was an old resistance level then here's a proven support level we broke down below that so we're coming down here and where this bounce occurs we're bouncing off of a lower low okay that that is a lower low so we no longer have an uptrend now we have at best okay at best the the first leg of a potential downtrend at worst more you know perhaps more more of a more of an entrenched downtrend but the thing to keep in mind is because we're in a downtrend now we're not we're usually not looking this as a trend trade we don't we don't automatically have an expectation that the trend is going to reverse itself and do this it could okay but we don't but but but that is not and that's not basically an automatic so what we can do is this with regards to exit we can look at where this thing broke down and really it kind of it kind of broke down right right in this area right here right because this is a low we came up then we came down here we created we started creating a lower low right here so i'm going to measure this move to the downside using fibonacci extensions this is a technical tool we have come over here and i'm going to grab fib lines right here and i'm just going to measure that distance all the way to the bottom right there just like that and boy we can't even see that can we let's change these colors i don't want to have to go through and change all of them but let's do it real quick shall we we'll those are not great colors to look at on that chart but we'll have these changed over here in just a moment or two and i'm also going to change the default on this um save as default yeah okay there we go so what what what i want what i want to illustrate here investors is that when you're looking at fibonacci when you're looking those fibonacci proportions and you're looking for a stock to bounce and start moving up we want to keep in mind that if we roll over before getting to the 38 the 38.2 retracement level we're likely when we roll over to go down and create a lower low and why when i say likely i mean that just tends to be the situation when you look at a lot of stocks it's not always going to be the case but that tends to be the situation on the other hand if we get above 50 and particularly if we get above the 61.8 level
before we start to roll over then we're in a situation where a little bit more likely to come off of a higher low and continue to move up so that's why we wanted to put these up here see okay where do we go well here's 23 right here is 38 right here is 61. if we're able to get above the 61.8 level up here before we have a bearish candlestick pattern then there would be some justification to treat it somewhat as a trend traded let it pull back and let it find support however if we get up here if we if we come up here to maybe the 50 level or if we come into this level right here and then we get a bearish candlestick pattern we may choose to just exit the trade there one way isn't necessarily better than the other if you want to just take if you're looking for some swing profits and you just go ahead and exit at any time we get a bearish candle here but if we get above the 61.8 there would be some justification to hold it for a pullback look for a bounce off of a higher low and a continued movement to the upside so what is a bearish candle then well i don't know that we have a lot of time left to do that well we know we act we actually do have some time here so with regards to a bearish candle um if we got some over here one would be this okay that's a bearish engulfing pattern that's where we come up we open up a little bit above the the top of the previous day's candle then we close down below the body that's a bearish engulfing so bearish engulfing would be one another one would be a spinning top or a or a doji like this when we have a can like this that represents a pause and a potential move to the downside okay another possibility as we're moving up here as you're moving up here if you have what's called a hand what's called a hanging man that's going to be a small body like this and a long lower shadow that's also a bearish candle and then finally would be one that's called dark cloud cover if we got a dark cloud cover anywhere in here um this is i believe this was dark cloud cover we gapped above here we didn't come all the way down below here but we well actually that's that that's going to be a green castle forget that but if we're moving down we have a candlestick like this and then we start moving up like this and then we move up like this and we come down and so we close down here at be beyond the halfway point of the previous day that's called dark cloud cover so again just to reiterate once you're in these trades keep in mind during a counter trend trade look to get out on the first bearish candlestick pattern could be bearish engulfing could be dark cloud cover could be a hammer could be a doji okay look look to get out on any one of those however if you're if the recovery goes beyond the 61.8 fibonacci retracement
level there is some justification to go for it to go ahead and let it pull back and look for a bounce off of a higher low before continuing to move to the upside that's going to be a personal choice in our situation we'll be looking at two contracts we may want to play one from a shorter term standpoint maybe the other one from a longer term standpoint if indeed we get filled on these okay so so we did so we did want to address that well there is over here in the in our list of futures here one of the reasons i wanted to discuss this today is because we have a lot of stocks with this pull down we have a lot of stocks during this oversold zone now there's the russell i was also looking at the dow here if you look at the dow we have the same type of situation the dow actually looks a little bit stronger with regards to bounce we're getting we're already trading above here we're we're we're not above the high okay but if you're looking at entering in on a bullish candlestick we're pretty close to having a bullish engulfing pattern there also we've got um palladium down here okay i don't think i want palladium on this this on palladium right here because we have this sideways movement we may want to say you know rather than say we need to trade above this high right here maybe if i just get a a break above that sideways moving that resistance level possibly take an entry there we have silver same type of situation with regards to with regards to the bullish engulfing pattern we have light sweet crude here we have the here we have the bullish cluster i think i said bullish golfing bullish cluster here we're looking at all these bullish clusters here natural gas bullish cluster we don't we don't have a technical entry but we you know there's some of these things that are on the radar here heating oil right here bullish cluster the nike the nikkei average do we have a bullish cluster down here looks like it looks like i'm not seeing a bullish cluster it looks like maybe maybe a little bit earlier in the day possibly we had them we don't don't have it right now but anyway there there are there are a lot of these bullish clusters are going on right now the market investors so what i'd like to encourage all of you to do is from a paper trading perspective go ahead and pull out the market forecast today we're just paper trading here look at it from a technical standpoint put in put in some potential entries it could be it could be it could be a close above the high the previous day you could you could go for for for a trade above the high of the bullish cluster candle like we did here a little bit earlier i'd encourage you to kind of get used to the market forecast tool itself come in here and make some of these counter turn trades realize they are counter trend trades okay so they are a challenge for sure in relationship to that all right folks well let me just come over here in the um chat window right here and let's see we've got a couple minutes let me just say appreciate barb coming over here and addressing all your questions here also i want to show you some additional resources here let's see we got here and let's see okay yeah so if you want to if you want to see the code for yeah you're not going to you know on that on on that custom when you don't see all of the code for the market forecast because that's proprietary but you do see some of the some of the stuff that we add in there but i basically explained or tried to explain to you what that was it looks like barb has all the bases covered over there so appreciate that barb all righty so let me just show you one other resource in here okay i'm going to come over here here's the td ameritrade website now in our session here it is assumed that you do have a little bit of a knowledge of future just kind of a basic of what futures are if you're if you felt a little bit lost today i can guarantee you that you are not alone because we got we got pretty complex today we know we looked at futures but we looked at technical analysis look at the market forecast tool this is being archived and recorded so keep that in mind but if you are feeling a little bit overwhelmed here i'd encourage you to come to the td ameritrade website right here and come up here where it says education okay and come down here under education center and come over here and click on futures and then when this opens up we have we have an online futures course for those of you that are that are just getting started with futures it's right here this kind of takes you through and kind of introduces you to the future so you show you so you'll feel a little bit more comfortable with regards to the stuff we're talking about and then there's also some videos here on some different types of futures contracts as well all right investors so with that let's go ahead and wrap things up here for today all right so we discussed the market forecast tool we identified oversold contracts using the market forecast tool we demonstrated how to enter a paper trade on the thinkorswim platform also just a reminder love to see over there on twitter at kroc underscore tda i also encourage you to follow barbara on twitter lots of great information over there from barb as well as the other coaches here at td ameritrade and just to remind our investors that our content is intended for educational informational purposes only not investment advice or recommendation of any security strategy or account type everybody thanks again for joining us here today for futures basics and beyond hope you have a great rest of your afternoon and evening best of success you're investing and hope to see you next time bye everybody we'll catch you later thanks again for joining us [Music] you you