Hi guys, How do you spot lock-limit days on a daily futures chart? Also, I know it depends on the specific commodity, but on average, how common are lock-limit days?
Limit down days in equity indexes are quite uncommon. In fact I don't think there has been one in the in the es in over 5 years. Imo we will get one soon though. The rumors of intermeeting fed cuts and faber reports one day won't bail the bulls out.
I haven't seen a limit down or up in the futures since the wild and fun days of 2000. I am pretty sure that they changed the limits that the markets lock at sometime after that. Believe it used to be 2.5% on the index futures, now it is 5%. Obviously that would make it pretty rare. But always fun to watch if you are not losing. Even more fun being on the right side.
bluehello: "How do you spot lock-limit days on a daily futures chart ?" look for a horizontal line representing the OHLC limit price above or below the previous price, and/or series of such lines, between which there'll be a gap/s "Also, I know it depends on the specific commodity, but on average, how common are lock-limit days ?" several commodities no longer have limits -- currencies, metals http://www.usafutures.com/commodityprices.htm limits would usually occur at or after extreme price moves, top or bottom of a market as well as within accelerating markets but in general limit days are infrequent
just saw a video of someone going apesh!t after discovering their trade when into lock limit. so if a lock limit is enforced who is actually forcing prices further down or up?
Usually is this is only one or two days; It is frequent in the grains; Other markets have other trading rules, found in the contract information section of the various exchanges. Unfortunately, they will never tell you how many times the contract reaches the limit.