Wheat Addressing Momentum DivergenceIn this update we review the recent price action in the Wheat futures contract and identify the next high probability trading pattern and price objectives to target
Zw1
ZW1!10. 18. 22 I'm showing you the setup wheat trade. I do not trade wheat, but maybe I will someday. I went process and everything that I described is exactly what I would do if I were taking a trade in this market. What I mean by that is that I would not just set the market up for the long trade...I would also look at the long trade that I missed. If I were doing it so it might take me an extra 5 minutes of my time to look at what I missed. The most important thing is that I get a familiarity with that market. It helps me to look to the left to get a feel of the market even though I missed a good trade. It takes maybe 5 minutes to do this... but it developed a comfort level for me. In effect, I am going through my "training list".
ZW1!10. 10. 22 This is a wheat trade and managing the target. I'm posting this because it helps reinforce what I was trying to convey this weekend.... looking for realistic targets and staying in good trades longer.
ZW1!9.7.22 Wheat: This looks like a long trade with a small stop. This is a market that can grind higher and lower, and used to be problematic for me because markets like this move slowly very small range, and that is usually very annoying for me. However, I think there's a technique that I personally use, it keeps me in the market longer in a way that's more tolerable. Take a look and see if this could help you. I think it's very easy to think of a market as being weak because of the way it's moving higher, and because of that I generally don't have good staying power. However, if I can get in, and it keeps on failing to make new lows, and all I have to do is look at it once a day keeping my original stop, and the market ends up not stopping me out as it's going higher, and I'm only looking at it once a day.... that is not a bad thing.
Rally in wheat is not done yetWheat futures rallied last week as it was expected. Congrats on your profits! Wheat is one of my favorite instruments. It follows setups very well. Many traders focus on more volatile instruments. But that is wrong. As traders, we have to be focused on a less speculative instrument that gives a better risk/reward ratio. I believe the price will retest recent highs near 570. But this market needs some breath. It is overbought on smaller time frames. However, Wheat is a very tight market. Usually doesn’t give big pullbacks. I continue to look for and take buy signals in this market.
