ABSTRACT
This chapter shows the journeyman that chart analysis can be used as a decision-making method in the 21st-century futures dramatic markets. In fact, if most futures charts were given to an analyst, without issue identification and dates would not be identifiable as commodity charts. Allowing for the various essential differences between commodities and stocks, the basic technical methods can be applied. Some traders set their stops using money management rules rather than technically identified points. The use of money management stops has been very successful for many traders. A money management stop is, simply enough, a stop calculated by deciding to risk 2% of capital on a trade. For example, William O'Neil says that when a stock trader enters a position, he should set a stop 8% under his entry price. The skilled trader, first of all, catches the original signal—the power bar exiting from the sideways pattern.
