20. Cash Market Trend Lines

The cash market trend lines have value to helping determine trends. 

You can bring up a cash index chart on yahoo finance, or even on your phone. 

What we do is only look at the day's action. Meaning when you first open the cash chart, it won't have much data on it. But after the opening range which is 30 to 60 minutes, it starts to build a trend line. 

You can eyeball the trend lines easily. If you see the cash index charts are trending up, then you would concentrate on the long side until the trend line is taken out. 

When the trend lines are taking out, the market could be signaling a turn in trend many times. 

Note: The markets can change direction 3 to 7 plus times a day, 

We look at the line on close type charts only for this view. 


Futures, Options on Futures and Forex trading involves a substantial degree of risk of loss and is not suitable for all individuals. An investor could lose the entire investment or, in some cases, more than the initial investment. Past performance is not necessarily indicative of future results.