CL Journal

Screenshot_20170710-011254.png
 
Buy1Sell2 said:
HUH?
More...

I'll type it again...You're smoking the funny stuff if you think settlement price in futures has any bearing on future movement. It is just the settlement price, man. It only affects people who hold for swings, not for daytraders. It does not dictate where the price will go in the future. It is just a VWAP on previous movement and it settles on a price point, for clearing reasons. It is a RESULT of the previous day's trading, not an existential indication of future price action. Jeez.
 
I believe a close does have relevance, but certainly isn't the most important variable. Traders mostly look for oversold & overbought conditions to maximize return and reduce risk.
 
JSSPMK said:
I believe a close does have relevance, but certainly isn't the most important variable. Traders mostly look for oversold & overbought conditions to maximize return and reduce risk.
More...

What I am getting at is that the settlement price is just an arbitrary number the exchange must use to "settle" outstanding transactions in the queue. They had to come up with some way to do it, so that is it. There may be deeper reasons for the particular times the exchanges choose for their "settlements", but future price action cannot be a result of that. The settlement prices must deal with the invigorating machinations of the futures markets, and cannot have a bearing on the future.

Remember, settlement of a futures instrument does not equal close of that instrument.

Just follow price action on the charts, you'll see.
 
Overnight said:
What I am getting at is that the settlement price is just an arbitrary number the exchange must use to "settle" outstanding transactions in the queue. They had to come up with some way to do it, so that is it. There may be deeper reasons for the particular times the exchanges choose for their "settlements", but future price action cannot be a result of that. The settlement prices must deal with the invigorating machinations of the futures markets, and cannot have a bearing on the future.

Remember, settlement of a futures instrument does not equal close of that instrument.

Just follow price action on the charts, you'll see.
More...
First of all, I don't smoke dope nor drink. I'll give you a pass. Secondly, the most important price of the day is closing. And especially Fri.
 
You must log in or register to reply here.
Back
Top