The «Spark» System For Futures Trading On The Financial Market
In order to conduct successful operations on the derivatives market, investors need a technical method for quote analysis which will enable them to get the highest possible number of accurate trading signals. We suggest studying the Spark indicator strategy, the basic tools of which are highly technical services.
Its use in derivatives trading shows excellent statistics for successful contracts – on average, each trader is able to see more than 80% of their positions close with a positive financial expiration. Thus, by having an advantage on the market, investors are able to dynamically and steadily increase the amount of funds in their trading account.
The technical services of the strategy
When describing the operating principle of this technical method of analysis, it is worth noting that its algorithm works on the basis of a combination of multi-format indicators. The system includes a trend analysis service, which is necessary in order to identify flat and clearly defined market movements, an oscillator with a quick response to changes in the direction of price fluctuations, as well as an auxiliary oscillator tool that determines medium-term market movements on the minimum chart time frames. Thus, by combining various technical tools in one system, we obtain a strategy with a high level of signal efficiency.
So, to set up the chart and the trading system template, go to the Tradingview (https://www.tradingview.com) online service, change the quote building frequency to the M1 range and install the following technical components:
- Revised Ishimoku Kinko
- MACD Split Colors
- Trend Trigger Factor
The purpose of this setup is to obtain the following technical markup generated by the strategy tools on the liquidity chart:
Conditions for using the system
- Assets – this technical approach to market analysis was developed to assess the quotes of highly volatile trading instruments. Therefore, we recommend using the cryptocurrency market assets for futures trading, as well as the main pairs of fiat currencies, which show the biggest changes in value during trading sessions.
- Trading time – we use the analysis system only during the daily stock exchange sessions, when quotes demonstrate high volatility.
- Assessment range – to demonstrate how the system operates, we are using the chart with a time frame of M1 – these are the most optimal conditions for highly dynamic trading on futures contracts. You can change it but we recommend working on chart time frames from S30 to M5.
- The terminal for signal processing – you can use any company’s platform to trade on the derivatives market as the system is completely universal.
To open a trading contract on a growing quote trend, you’ll need to identify the following technical signals from the basic components of the strategy:
- The technical lines of the MACD Split Colors service indicate steady development of an uptrend of the market by means of the movings building upwards with a relatively high level of divergence.
- The blue and red fast lines of the Revised Ishimoku Kinko indicator have intersected upwards
- On the assessment service for short-term trend reversals, the moving instrument has crossed level 0 from below upwards
To open a trading contract on a falling quote trend, you’ll need to identify the following technical signals from the basic components of the strategy:
- The technical lines of the MACD Split Colors service indicate steady development of a falling trend of the market by means of the movings building downwards with a relatively high level of divergence.
- The blue and red fast lines of the Revised Ishimoku Kinko indicator have intersected downwards
- On the assessment service for short-term trend reversals, the moving instrument has crossed level 0 from above downwards
The system uses its technical components to identify quite stable trend fluctuations of quotes on the chart, therefore, you can use positions with a wide range of action when trading. The expiration term for each contract will depend on the operating time frame of the chart, which is assessed when using the trading strategy, as well as on the level of market volatility of the asset at the time of registering the position. So, when working on the M1 with assets of medium volatility, it is recommended to use trades with an expiration of 5-10 minutes.
To form relatively safe trading conditions on the signals of this technical analysis system, we apply the standard restrictions on the cost of trading lots. When operating on a minimum-size account, use futures contracts with the minimum amount of value. If there is a sufficiently high amount of capital, use lots of no more than 5% of the account balance.