Russell 2000 Technical Analysis, updated on 29 June, 2022, 40 minutes after the market open (14:10, Wednesday, 29 June 2022, GMT):
- Russell futures seems to be an interesting spot for a bullish reversal contrarian position, with a fairly good reward vs risk ratio
- If 4 hour candle closes below 1700, then the bears regain control on RTY futures and Longs should exit
- See the following Russell 2000 Futures Technical Analysis video for further details and stay tuned for near future updates!
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ForexLive.com brings you technical analysis videos to make sense of where the Russell 2000 seems to be going, and presents possible trade ideas, including entry Entry In financial trading, an entry is simply the point at which a trader enters the market by either buying or selling a certain asset. Entries have two attributes, i.e. the price at which the trader entered, and the time at which the trader entered.There are a number of different types of entry in trading. The most common one is the Market Order. A market order is a manual order, which allows the trader to enter the market virtually immediately upon demand, at the current market price. A trader typically executes this by clicking on a buy or sell button on their broker’s platform, which displays the bid or ask price.The other two types of entries are pending orders, known as a stop entry order, where the trader buys above or sells below the current price, and a limit entry order, where the trader buys below or sells above the current price. Understanding Entries With regards to a stop entry order, there are two types, known as a buy stop entry order, and a sell stop entry order. A buy stop order is a pending order that is pre-set by the trader on a broker platform, which is a command to automatically buy an asset at a specific price above the current market price, should the price of that asset reach that point. A sell stop order is a command to automatically sell an asset at a specific price below the current market price, should the price of that asset reach that point. Concerning a limit entry order, again there are two types. First, a buy limit order is a pending order pre-set by the trader on a broker platform. This command automatically buys an asset at a specific price lower than the current market price, should the price of that asset reach that point. A sell limit order is a command to automatically sell an asset at a specific price higher than the current market price, should the price of that asset reach that point.With all pending entry orders, if price does not happen to reach the specified price, the orders are not executed. Some traders also apply a time limit for pending entry orders, so that if the price doesn’t reach a specified price within a certain time period, the order is cancelled after that time period expires. Pending entry orders are useful since a trader cannot be at one’s trading terminal at all times, so they are executed automatically in the trader’s absence. However, the disadvantage is that because the trader isn’t monitoring the market, there could be a nasty surprise upon arrival.TBC In financial trading, an entry is simply the point at which a trader enters the market by either buying or selling a certain asset. Entries have two attributes, i.e. the price at which the trader entered, and the time at which the trader entered.There are a number of different types of entry in trading. The most common one is the Market Order. A market order is a manual order, which allows the trader to enter the market virtually immediately upon demand, at the current market price. A trader typically executes this by clicking on a buy or sell button on their broker’s platform, which displays the bid or ask price.The other two types of entries are pending orders, known as a stop entry order, where the trader buys above or sells below the current price, and a limit entry order, where the trader buys below or sells above the current price. Understanding Entries With regards to a stop entry order, there are two types, known as a buy stop entry order, and a sell stop entry order. A buy stop order is a pending order that is pre-set by the trader on a broker platform, which is a command to automatically buy an asset at a specific price above the current market price, should the price of that asset reach that point. A sell stop order is a command to automatically sell an asset at a specific price below the current market price, should the price of that asset reach that point. Concerning a limit entry order, again there are two types. First, a buy limit order is a pending order pre-set by the trader on a broker platform. This command automatically buys an asset at a specific price lower than the current market price, should the price of that asset reach that point. A sell limit order is a command to automatically sell an asset at a specific price higher than the current market price, should the price of that asset reach that point.With all pending entry orders, if price does not happen to reach the specified price, the orders are not executed. Some traders also apply a time limit for pending entry orders, so that if the price doesn’t reach a specified price within a certain time period, the order is cancelled after that time period expires. Pending entry orders are useful since a trader cannot be at one’s trading terminal at all times, so they are executed automatically in the trader’s absence. However, the disadvantage is that because the trader isn’t monitoring the market, there could be a nasty surprise upon arrival.TBC Read this Term price, take profit Take Profit In financial trading, a “take profit” (TP) is an order made by the trader via their broker platform. More specifically, this order identifies the amount of profit at which a trader wants their current position to exit at, should the instrument happen to reach that level. The take profit is pre-determined either by setting the number of points or by setting the price at which the trade will automatically exit for a profit.A take profit order is should or is usually placed at the start of a trade, just after a trader has entered the market. Naturally, a take profit level can be above or below the entry price, depending on whether the trader is long or short. Using Take Profit Orders in ForexFor example, in currency trading, let’s assume that the EUR/USD is trading at 1.1200. If a trader anticipates the euro will gain strength against the dollar, they may buy EUR/USD. In such a scenario, the take profit target would be placed above 1.1220. How much above the entry price is up to the trader, which they will determine by the use of technical and/or fundamental analysis. If the trader feels the price should comfortably reach 1.1260, but are not convinced it will rise beyond that, they can place a TP of 40 pips on their forex broker platform. Once this TP is set, (known as a buy take profit order) if the price does reach 1.1260, it will automatically close out for a profit.Of note, the trader does not need to intervene, thereby freeing up time, especially since most individuals are unable or do not desire to keep a constant eye on the market. Likewise, if the trader held that the price would be going down, they could set a sell take profit order, which would be placed at a certain level below the entry price. In financial trading, a “take profit” (TP) is an order made by the trader via their broker platform. More specifically, this order identifies the amount of profit at which a trader wants their current position to exit at, should the instrument happen to reach that level. The take profit is pre-determined either by setting the number of points or by setting the price at which the trade will automatically exit for a profit.A take profit order is should or is usually placed at the start of a trade, just after a trader has entered the market. Naturally, a take profit level can be above or below the entry price, depending on whether the trader is long or short. Using Take Profit Orders in ForexFor example, in currency trading, let’s assume that the EUR/USD is trading at 1.1200. If a trader anticipates the euro will gain strength against the dollar, they may buy EUR/USD. In such a scenario, the take profit target would be placed above 1.1220. How much above the entry price is up to the trader, which they will determine by the use of technical and/or fundamental analysis. If the trader feels the price should comfortably reach 1.1260, but are not convinced it will rise beyond that, they can place a TP of 40 pips on their forex broker platform. Once this TP is set, (known as a buy take profit order) if the price does reach 1.1260, it will automatically close out for a profit.Of note, the trader does not need to intervene, thereby freeing up time, especially since most individuals are unable or do not desire to keep a constant eye on the market. Likewise, if the trader held that the price would be going down, they could set a sell take profit order, which would be placed at a certain level below the entry price. Read this Term targets and stop losses, for you to consider. Visit this page as more technical analyses are being published!
Previous Russell 2000 Technical Analysis update from 28 June, 2022:
Trade the Russell 2000 at your own risk.
