The easiest way to identify bottom of WTI Crude oil
Normally, ratio between nearest months should be stretched around the bottom of the strong down trend. You can use this indicator to support your decision to oil at the lower price.
I don't suggest to use CL1!/CL2! as leading data because the spread between this two contacts are very close and quite stable. I suggest you to use CL3!/CL4! and CL2!/CL3! instead. The result looks much more useful than the nearest contact.
PS. This indicator work for WTI Crude oil and Brent crude oil for daily/weekly data.
I don't suggest to use CL1!/CL2! as leading data because the spread between this two contacts are very close and quite stable. I suggest you to use CL3!/CL4! and CL2!/CL3! instead. The result looks much more useful than the nearest contact.
PS. This indicator work for WTI Crude oil and Brent crude oil for daily/weekly data.
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