Kansas City Vs Chicago Wheat Spread IdeaI come up with trades that really save people time off the screens and have great risk to reward parameters using Futures Spread Trades, and Span Margin brokers to get in cheap as possible and maximize my per capital usage.
This idea is on a rock bottom price we can call a supply area we have visited in the past. Follow and see.
Thanks
ZW1!
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.
Potential rally in wheatBased on COT reports commercials are long wheat. They are correct 98%. It may take time to form a buy signal. But with that in mind, we look for buy signals - whatever happens first
- break out of daily resistance
- lower high + oversold oscillator
- divergence (I use RSI and OBV)