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Energy Commodities

Pivot Points StrategyPivot points can be used as entry points for new trades or as a close signal for the existing ones. There are different types of pivot points with a different mathematical formula or simply using previous highs and lows. HOW TO TRADE PIVOT POINTS The following scenarios work with the Traditional Pivot Points For the Camarilla version normally R and S are closer to the price and we use a different setup. Trading setup #1 (Not so strong trend): Open price is between R1 and S1 Long when the price moves back above S1 after going below S1. Target will be P, R1, R2, .. levels. Place Stop loss at the S2 level Wait for the price to go above R1 and then when it moves back below R1 again, go short. Profit target will be P, S1, S2 S3 levels and stop-loss above R2 Trading setup #2 (Normally very trendy bullish markets): Open price is between R1 and R2 Buy or go long when the price moves back above R1 again after going below R1. Target will be R2, Place stop loss at R1 Wait for the price to go above S1 and then when it moves back below S1 again, sell or go short. Target will be S2 levels, and the stop loss will be above P. Trading setup #3 ( Very trendy bearish market ): Open price is between S1 and S2 Wait for the price to go above S1 and then when it moves back above S1 again, then go long. Target will be P, R1, R2 levels, and stop-loss below S2. Wait for the price to go below S4 and then when it moves below S2, go short. Place stop loss above S1. Trading setup #4 (High probability for a trend reversal or correction): Open price is above R2 Buying can be risky at this level. Wait for the price to go below R2. As soon as the price moves below R1. go short. Place stop loss above R3. Target S1, S2, or P Scenario #5 (High probability for a trend reversal or correction): Open price is below S2 Selling could be risky at this level as the price has opened with a big gap down. Wait for the price to go above S1. When the price moves above S1, buy Place a stop loss of S2. Target R1, R2, and P.
UEducation
by apadanaforex
Learn To Trade Technical Analysis Hammer & Shooting StarHey Traders today I wanted to go over what I believe is one of the best ways to trade any market with Japanese Candlesticks using hammers and shooting stars. Normally you want the wick of the candle to be at least twice the size of the body of the candle. Alot of times they can lead to explosive moves in the markets. So lets dive in and see how to use this powerful technique in your trading arsenal. Enjoy! Trade Well, Clifford
Education
by TradeTheIndex
5
If you think technical analysis does not work, look at this!I published this analysis on October 18, 2021. Today, you can see it hit the target zone! If you have no time to learn different tools in technical analysis, at least do yourself a favor and learn how to use regression channels! However, Regression channels are not pure technical analysis! It is actually a statistical tool..! Most quant funds use statistical models to open and close their position..! The most famous model is mean reversion! What Is Regression? Regression is a statistical method used in finance, investing, and other disciplines that attempt to determine the strength and character of the relationship between one dependent variable (usually denoted by Y) and a series of other variables (known as independent variables). Now, let's consider Y=Price and X=Time! Now, you should do the math..! But do not forget we have different types of regression models: Quadratic, Qubic, Sinusoidal, and logistic...etc. Look at these examples: Bitcoin: Solana: NFLX: USOIL:
NASDAQ:MSFTEducation
by Moshkelgosha
2
Processing Spreads Provide Fundamental CluesSome futures markets offer contracts that are related to others and are processed products of the commodity. Understanding the price relationships, history, and paths of least resistance of the processed product versus the original input can provide valuable insight into supply and demand fundamentals. Moreover, these relationships shed light on other related assets. Market structures are the pieces of a jigsaw puzzle Processing spreads are real-time supply and demand barometers The soybean crush spread Gasoline and distillate crack spreads Monitoring corporate profits There is so much data at our fingertips, but we need to understand how to use and interpret the information. Processing spreads are invaluable tools as they are critical variables for market calculus when forecasting the path of least resistance of prices. The crude oil and soybean futures markets offer liquid futures contracts in products that can reveal significant trends, warning signs, and calls to action. Anyone who undertakes a home improvement project knows that the job will not go well without the correct tools. Trying to hammer in a nail with a screwdriver is far from optimal. Tightening a bolt with an ax is a disaster. The best tool leads to the optimal result. The processing spread is one of the most critical tools in my investment and trading toolbox. Market structure are the pieces of a jigsaw puzzle In the world of commodities, market structure are integral pieces of a puzzle. When put together, they provide clues about the path of least resistance of prices as they reflect and can be real-time indicators of supply and demand fundamentals. A commodity’s market structure includes: Term structure- Price differentials for nearby versus deferred delivery periods. Location differentials- Price differentials for delivery of a raw material in different regions. Quality differentials- Price differentials for differing grades, sizes, or composition of the same commodity. Substitution spreads- The price comparison of one commodity for another that can serve as a substitute. Processing spreads- The margin or differential for refining or transforming one commodity into its products. Together, the various pieces that comprise a market’s structure create a picture that often points to higher or lower price paths. Processing spreads are real-time supply and demand barometers The processing spread is one of the valuable tools in an analysts’ toolbox. It tells us if demand for the products is rising or falling. Consumers often require the processed product instead of the raw commodity. The differential between prices of the input, the commodity, and the output, the product, is a critical fundamental measure. Narrowing processing spreads signal falling demand while widening spreads are a sign that supplies are not keeping pace with requirements. Since futures contracts prices are constantly changing, processing spreads can be volatile. When the commodity and product trade in the futures market, the differentials provide a unique supply and demand perspective for traders and investors. There can be many reasons for price variance in processing spreads. However, comparing them to historical levels can serve as real-time indicators of fundamental forces that determine the underlying commodity’s price direction when exogenous factors are not impacting the overall refining or treatment process. Many commodities do not offer futures contracts in the products. The soybean and crude oil markets are exceptions. The soybean crush spread Soybean futures trade on the CME’s CBOT division. Soybean products, soybean meal, and soybean oil also trade in the futures markets on the CBOT with separate and independent futures contracts. Soybean meal is a critical ingredient in animal feed, while soybean oil is cooking oil. Both have other uses. Processors crush raw soybeans into the two products; the oil is the liquid from the crushing process, while the meal is the solid substance. The soybean crush spread can be highly volatile. The monthly chart shows the soybean crush spread over the past fifteen years. The spread traded to a low of a quarter of one cent to as high as $2.1950. The low was in 2013 when soybean futures were trending lower from the all-time high in 2012 at $17.9475 per bushel. The high was in October 2014 when soybean futures were consolidating at lower levels. The move to the high was because consumers bought soybean products at lower prices around the $10 per bushel level. More recently, the crush spread signaled that soybean futures had run out of downside steam. After trading to a high of $16.7725 per bushel in May 2021, the oilseed futures fell below $12 in October. When soybeans were on the high in May, the crush fell to a low of 52.75 cents. At high soybean prices, consumers backed off buying the oilseed products, leading to a price correction that took the price below the $12 per bushel level in October. Meanwhile, falling prices caused demand for products to return. The crush spreads traded to the most recent high at $1.9050 during the week of October 18. The rising crush spread was a sign of robust demand that lifted the raw soybean futures from the recent low. The November soybean futures chart shows the rise from a low of $11.8450 to the $12.50 level. The price action in the crush spread was a signal that demand for products would lift the soybean futures price. The processing spread action signaled the price bottom over the past weeks. Gasoline and distillate crack spreads Crude oil refiners process the raw energy commodity that powers the world into products, gasoline, and distillates. The NYMEX futures market trades contracts in crude oil, gasoline, and heating oil. Heating oil is a distillate fuel that is a proxy for other distillates, including jet and diesel fuels. Refineries process crude oil into the oil products by heating them to different temperatures in a catalytic cracker. The price differential between the input, crude oil, and the output, the products, are “crack spreads.” Rising crack spreads point to increasing demand for oil products. When they fall, it is a sign of oversupply or weak demand. Crude oil futures reached lows in April 2020 during the height of the global pandemic’s impact on markets across all asset classes. The NYMEX crude oil futures weekly chart highlights the bullish trend since April 2020 as the energy commodity has made higher lows and higher highs. The weekly chart of the gasoline crack spreads highlights the bullish trend since March 2020. Gasoline is a seasonal commodity that tends to reach highs during the spring and summer months and decline during the winter as drivers tend to put more mileage on their cars during the warm months. However, at the $17.63 per barrel level at the end of last week, the gasoline crack spread was appreciable higher than the peak in October 2020, when it reached $11.62 per barrel. The gasoline crack spread has provided bullish validation for the path of least resistance of crude oil’s price. The weekly heating oil or distillate crack spread chart also displays a bullish trend. Distillates tend to be less seasonal than gasoline as jet and diesel requirements are year-round. At the $22.53 per barrel level at the end of last week, the heating oil crack was far higher than its October 2020 peak at $9.96 per barrel. The crack spreads have supported the rising crude oil price as they point to robust product demand. Monitoring corporate profits While processing spreads can provide insight into the path of least resistance of prices for commodities that are inputs, they are also real-time earnings indicators for companies that refine or process the raw commodities into the products. Refiners or processors tend to buy the input at market prices and sell products at market prices. The refiners and processors make significant capital investments in refineries or other processing equipment. They make or lose money on the processing spread. When they widen, they experience a profit bonanza; when they fall, times can get rough. When the spreads rise above the cost of the process, profits rise. Low processing spread levels can lead to losses. Valero (VLO) is a company that refines crude oil into oil products. The chart shows that the high in October 2020 was at $44.88 per share. In October 2021, VLO was over the $80 level at the end of last week. Rising crack spreads have lifted profits for the oil refiner. Archer Daniel Midland (ADM) and Bunge Ltd. (BG) are leading agricultural processors. Soybean processing is one of the many business lines for the two companies. The rising soybean crush spreads have lifted profits for the companies. In October 2020, ADM shares reached a high of $52.05 per share. At the end of last week, the stock was at the $66.22 level. BG shares reached a high of $60.50 in October 2020 and were trading at the $88.33 level at the end of last week. The rise soybean crush spreads at least partially supported rising profits and higher share prices for ADM and BG. Processing spreads are real-time indicators for the demand of the commodities that are the inputs. They are also real-time earnings barometers for companies that process commodities into products. Any tool that improves your ability to analyze markets is worth keeping in that toolbelt. --- The full article and spread charts are available using the link below. You can also sign up for the Monday Night Strategy Call below. Trading advice given in this communication, if any, is based on information taken from trades and statistical services and other sources that we believe are reliable. The author does not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects the author’s good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice the author provides will result in profitable trades. There is risk of loss in all futures and options trading. Any investment involves substantial risks, including, but not limited to, pricing volatility, inadequate liquidity, and the potential complete loss of principal. This article does not in any way constitute an offer or solicitation of an offer to buy or sell any investment, security, or commodity discussed herein, or any security in any jurisdiction in which such an offer would be unlawful under the securities laws of such jurisdiction.
NYSE:VLOEducation
by Andy_Hecht
3
Education excerpt: OPECThe Organization of the Petroleum Exporting Countries (OPEC) The Organization of the Petroleum Exporting Countries (OPEC) is a permanent intergovernmental organization with main goal to coordinate and unify the petroleum policies of its member countries. This pertains mainly to securing fair and stable pricing in the oil market; efficient and regular supply of petroleum to consuming nations and fair return on capital to the producing countries. The OPEC was established in Baghdad, Iraq in 1960 by five countries. Founding countries were: Iraq, Islamic Republic of Iran, Kuwait, Saudi Arabia and Venezuela. One year later the organization was joined by Qatar in 1961. After that Indonesia and Libya followed in 1962. United Arab Emirates joined the cartel in 1967 and Algeria in 1969. Then Nigeria became member of the OPEC in 1971, Ecuador in 1973 and Gabon in 1975. Few decades later, Angola joined the OPEC in 2007, Equatorial Guinea in 2017 and Congo in 2018. Ecuador suspended its membership in 1962. However, it rejoined the cartel in 2007. But then again in 2009 Ecuador withdrew its membership from OPEC. Similarly, Indonesia suspended its membership in 2009 and rejoined the cartel in 2016 only to leave it again in 2016. Gabon also suspended its membership in 1995. Although, Gabon reactivated its membership in 2016. Qatar was the last country to terminate its membership in 2019. Current members: 1. Iraq 2. Iran 3. Kuwait 4. Saudi Arabia 5. Venezuela 6. Libya 7. United Arab Emirates 8. Algeria 9. Nigeria 10. Gabon 11. Angola 12. Equatorial Guinea 13. Congo The OPEC's executive organ is called the Secretariat and it is run by the Secretary General. Secretariat was originally established in 1961. It also functions as headquarters for the organization. In the beginning, OPEC had its headquarters in Geneva, Switzerland for five years. However, OPEC's headquarters were moved to Vienna, Austria in 1965. Executive organ is responsible for implementation of all resolutions passed by the Conference. Secretariat also conducts research and fullfills all decisions made by the Board of Governeros. The Secretary General is the representative of the OPEC who simultaneously acts as Executive of the Secretariat. The Secretary General is electable role and its term last three years. Although, there is possibility to renew this term once. The Secretary General is assisted by the Office of the Secretary general and several other officers and staff members of the OPEC. The Office of the Secretary general helps the executive chief of the Secretariat to maintain efficient relations with relevant international organizations and governments. Another important organ of the organization is the Legal Office which supervises legal matters of the Secretariat and provides legal advice to the Secretary General. In addition to that, there is also the Research Division that consists of three departments: Data Services, Energy Studies and Petroleum Studies. The Research Division is responsible for conducting research with regards to the energy and related matters. Infrastructure and services are provided by the Support Services Division. OPEC Fund The OPEC Fund for International Development is international finance development institution that was established in 1976. It consists of 12 members: Algeria, Ecuador, Gabon, Indonesia, IR Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, the United Arab Emirates and Venezuela. Its purpose is to provide financial help to the developing countries and support advancement in these low-income and middle-income countries. Disclaimer: This content serves solely educational purpose.
TVC:USOILEducation
by Tradersweekly
6
How do you trade with Correlation?How do you trade with Correlation? You can trade on forex pair correlations by identifying which currency pairs have a positive or negative correlation to each other. I have identified above the 3 main correlation pairs which correlate best with each other. In the conventional sense, you would open two of the same positions if the correlation was positive, or two opposing positions if the correlation was negative, for example when OIL increases in value, the Canadian Dollar tends to increase in value. This is because Canada is among the top 5 oil producing and exporting countries making them directly correlate. CHF & GOLD Correlation Both the Swiss Franc (CHF) and physical gold have acted as reserve 'currencies' thereby establishing a relationship between the gold price and Swiss Franc . Despite some differences, the Swiss Franc and the gold price are correlated and the similarities shared by the two can be clearly identified. This the Swiss National Bank has a huge amount of Gold Reserves and is one of the largest possessors of gold reserves worldwide. This also gives the Swiss Franc direct correlation with gold as the government passed a legislation that the Swiss Franc must be backed by gold . Why is it important Correlation is important when trading your strategy as you can manipulate the market and gain more confluences to confirm your entries. For example if you are focusing on the Canadian Dollar and can see a bullish trend and an entry point, OIL must also be bullish due to the correlation and you can confirm your analogy as you have analysed 2 correlating pairs which are both bullish .
OANDA:XAUUSDEducation
by Pips-Collector
Global events - the last 18 Months. I recently posted a timeline of Bitcoin events as well as record several videos on the current Elliott Wave moves around Bitcoin, DXY and a few Forex pairs. Here’s a link to the Bitcoin timeline; Looking back at the last 18 months or so now, I wanted to cover some of the significant events that have taken place, which would have had some (but not as much as you think) of an effect on the Elliott counts as a whole. For those of you not familiar with Elliott, there is a link in the ‘related ideas’ section covering the basics. So, let’s go back in time; Brexit announced back in 2016 – carried through and completed in 2020. Thus, kicking off the year with a fair size event, the global markets not quite sure what the fall out would be, where the damage would come and of course if there where to be profitable positions to obtain. An awful lot of hesitation & fear seen in the market. Jump forward to the next big event; although COVID-19 was technically pre 2020, the real effects did not start to emerge until early 2020 when the world went into LOCKDOWNS, crazy mayhem soon followed and has not really disappeared since. After the world starts to go mad! A few other things happen during this period! - Oil goes negative for the first time in HISTORY - Gold hits $2,000 - S&P creates an all-time high If this was not enough to cause global confusion, we also had an interesting period in the United States. All though there are plenty of other events that have shaped this last 18 months or so, you can clearly see with so much – the charts will be a little more sporadic, a little harder to read. So, although methods such as Elliott and Wyckoff are still very powerful. Even Wyckoff Schematics got a good run in the social media platforms! (Probably kicked that off in March) 😉 Interesting times ahead - @TradingView community, take care of yourself and keep in mind! It’s been a crazy 18-months, 2 years! **(This is not a trade idea, even a bias - it's just highlighting how insane these last 18-months have been) For education on Wyckoff and Elliott - see my bio below; Disclaimer This idea does not constitute as financial advice. It is for educational purposes only, our principle trader has over 20 years’ experience in stocks, ETF’s, and Forex. Hence each trade setup might have different hold times, entry or exit conditions, and will vary from the post/idea shared here. You can use the information from this post to make your own trading plan for the instrument discussed. Trading carries a risk; a high percentage of retail traders lose money. Please keep this in mind when entering any trade. Stay safe.
TVC:DXYEducation
by Mayfair_Ventures
Today’s Notable Sentiment ShiftsHigh-Beta – AUD, CAD and NZD benefited from rising commodity prices on Tuesday, as markets set aside concerns about the spread of the Delta coronavirus variant. The notable outperformer in the commodities complex was oil prices, with WTI approaching $68 per barrel, up almost $2.50/+3% on the day. Indeed, following today’s strong performance in WTI, TD Securities noted that: “With the impact on demand fueling chatter that OPEC+’s next monthly output hike could be delayed, and China’s “Zero-Covid” strategy appearing to have quickly contained the outbreak, crude oil could once again have a solid footing to challenge the $70s.”
OANDA:WTICOUSDEducation
by thunderpips
5
The Importance of Understanding the Commodities MarketIn this educational post, I'll be explaining the reason why both investors and traders need to understand the commodities market. The commodities market is a market in which raw, hard, and soft commodities are traded. Examples of commodity assets include gold, oil, wheat, grain, copper, and even livestock. While these aren't commonly traded markets among retail investors, understanding assets within the realm of commodities can provide an edge in trading and investing. Benefits to Investors - The primary reason that investors needs to understand the commodity market is because it helps provide an overall picture of the entire financial market. - For instance, in the case of Nickel, Copper, Zinc, and other industrial metals, the price action differs depending on the market cycle, and certain metals are sensitive to, and heavily affected by specific industries. - Popular commodities like Gold and Oil’s price action reflects the overall market trend and sentiment. - As such, a retail investor with a deep understanding in commodities is capable of looking at the stock market from a different angle. - Secondly, understanding commodities provides a huge advantage in terms of portfolio management. - How 'well' you have invested, isn't simply determined by your annual return. - Your sharpe ratio (your return divided by the volatility) tells a more accurate story. - In order to succeed as a retail investor, you need to focus on increasing your sharpe ratio, or your risk adjusted return. - And the best way to do so, is to diversify, specifically by looking at the correlation between certain assets. - There are a plethora of assets in the commodities market that provide a great hedge / means of diversification against the stock market. - Leveraging this knowledge will help investors design a portfolio that provides them great risk-adjusted-returns. Benefits to Traders - The commodities market can be a great opportunity for traders, as long as they spend their time getting used to the market. - Normally, when the stock market is overbought, or when it demonstrates sideways action, traders often make the mistake of overtrading. - Traders enter positions at suboptimal levels, because they have no option but to trade at the stock market. - However, understanding the commodity market gives them an edge. The best analogy to explain this, is like playing online poker. - When playing poker, the player waits for good hands to appear, so he can make a bet in his favor. - When he plays online poker, he can have multiple games going on at once, and play the game where he gets the upper hand. - In the same vein, when a trader knows how to trade commodities, instead of waiting for a good entry in the stock market, he can simply trade assets within the commodities market. - If you think stocks are overvalued, there’s a chance for you to move onto gold, silver, oil, or even industrial metals. - You can take a look at multiple assets, and find one that has a good risk/reward ratio right now. Conclusion The commodity market is a market that is huge in size, yet often overlooked my many, if not most retail traders and investors. However, understanding which assets are traded, their price action (in relation to other assets), can help both investors and traders acquire an edge.
Editors' picks
TVC:USOILEducation
by Michael_Wang_Official
7
A "Welcome to" Pinescript codingThis simple idea is an intro to @TradingView & @PineCoders Nothing fancy or complex, if you are already coding - you can skip this. simple MA build walk through & adding a second MA. If you want to get into coding, then here's the basic introduction. FYI - I am not a coder, 21 years trading experience and know a bit about the instruments - but new to actual coding, especially in Pine. Hope it helps someone! Disclaimer This idea does not constitute as financial advice. It is for educational purposes only, our principle trader has over 20 years’ experience in stocks, ETF’s, and Forex. Hence each trade setup might have different hold times, entry or exit conditions, and will vary from the post/idea shared here. You can use the information from this post to make your own trading plan for the instrument discussed. Trading carries a risk; a high percentage of retail traders lose money. Please keep this in mind when entering any trade. Stay safe.
Editors' picks
COINBASE:BTCUSDEducation
by Mayfair_Ventures
49
The Basics - Trend LinesTrend lines are used in technical analysis to define an uptrend or downtrend. Traditionally, uptrend lines are made by drawing a straight line through a series of ascending higher troughs (lows). ... With downtrends, trend lines are formed by drawing a straight line through a series of descending lower highs. In an uptrend, the “imaginary line” acts as support and in a downtrend, the line connecting the points at swing highs become the resistance. Although we can go into what and why – the logic for trend line, is to keep it simple. It’s another subjective area and people like to spot patterns. It’s human nature. This shows in it's most basic form the concept of a trend line. In an uptrend we want to see, higher highs as well as higher lows as shown below; And in a down trend, the opposite is true - Lower highs & lower lows to create the pattern as per main image of this post. Many other techniques and indicators use this concept, and perhaps the most famous being Elliott waves. Here's a post on Elliott basics; This then all points back to Dow Theory - where markets have 3 cycles and 3 waves (another lesson for another time) in short; Here's also a post covering the Dow basics; You can also use Moving averages as part of "working out the trend" And her is another simple guide to MA's (moving Averages) We thought it would be interesting to post, more of a beginners post that our usual stuff. Hope this helps some of the newer traders. Disclaimer This idea does not constitute as financial advice. It is for educational purposes only, our principle trader has over 20 years’ experience in stocks, ETF’s, and Forex. Hence each trade setup might have different hold times, entry or exit conditions, and will vary from the post/idea shared here. You can use the information from this post to make your own trading plan for the instrument discussed. Trading carries a risk; a high percentage of retail traders lose money. Please keep this in mind when entering any trade. Stay safe.
FX:XAUUSDEducation
by Mayfair_Ventures
8
Crude Oil Spreads: A Quick Intro.Spreads are complex instruments. This is just an introduction and some ideas to get our brains ticking over. I had started writing a guide to understanding these three types of spreads, but it just got a little long. It might be easier to do it this way: What do you see above? Here are some observations to get started: 1 All spreads topped out well before June Crude Oil topped out. From about 17th Feb, those spreads stopped gaining. Could spreads be a way to take a contrary position as a trend exhausts itself, and have a little room for error? It certainly is here (although not always the case). 2 Look at the ATR for each. Spreads show lower volatility. 3 Correlations (the CC shows the spread correlation to the underlying June contract). Correlations seem strong during a trend then do their own thing at other times. Change creates opportunity. Constant correlations are not as fun. 4 Basic spreads: bull and bears – are directional. That is, they move closely with the underlying. More complex spreads, like the fly and condor seem to be suited to shifting sentiment along the forward curve. 5 Flies and condors are very similar. The condor tends to have a little more volatility than the fly. In this case, it’s not much. - It can be a complex subject, worthy of something closer to a book, than a comment here, but it’s a start. Just a warning – going down the spread trading path might change everything. - A couple of futures markets where flies and condors are often traded: Crude, Natural Gas, Grains, Eurodollars (and most other STIRs). Options - that's a totally different chat....
NYMEX:CLU2021Education
by TheTradarien
You Can't Predict Which Trade Will Succeed. How To Deal?This is why I prefer to open many small positions - you never know which one will be successful! --- How to understand price action. It is very easy to read price action if you have a reference point. These support/resistance lines are there to help you read where the buyers and sellers are likely to make a stand. You can also think of these indicators as moving pivot points . MasterChartsTrading Price Action Indicators show good price levels to enter or exit a trade. The Blue indicator line serves as a Bullish Trend setter. If your instrument closes above the Blue line, we think about going Long (buying). For commodities and Forex, when your trading instrument closes below the Red line, we think about Shorting (selling). For Stocks, I prefer to use the Yellow line as my Bearish Trend setter (on Daily charts ). A stock has to close below the Yellow line first, then rally towards the Red line and top out there. This is where I would short it. Be sure to hit that Follow button! Please find me on social networks via the link on my profile page for more ideas from @MasterCharts!
NYSE:WTIEducation
by mastercharts
2
📚 What To Look for When Charting Here is a chart of EURCAD. There were various opportunities available both short term and long term. Once you can identify chart patterns, you can easily anticipate where price will go next. A great chart pattern that I always use is flags - Bull Flags and Bear Flags. In the chart you can see that many times price impulsed and then created a flag and then carried on with the move. Flags can be found both in higher timeframes as well as lower time frames. Be sure to look out for them!
Editors' picks
Education
by WicktatorFX
12
Inter-market analysis, MARKET CRASH vs. CORRECTION Market crash usually have a devastating effects on prices in commodities and energy market. As you see in the charts, we see how .com bubble, housing bubble, burst and COVID-19 pandemic affected oil price in the past. What we see started since early February 2021 in the market has not the defined criteria of a market crash, and seems to be a correction. Although the stock market is in the red zone, we see slight changes in prices in commodities and energy market. In conclusion, whether it is a correction or early market crash, it would be better to sit out, monitor and reevaluate the situation. Keep in mind the future outlook is pretty much different from Feb-March 2020, when a pandemic was just started(once in a lifetime experience). IMO: soon recovery phase will start in most developed countries followed by developing countries. The future outlook is actually bright and United States market could experience an economic boom because: A: a year from now, most of the population will be vaccinated and ready to back to business! B: Expansionary Monetary policy will enhance exports, stimulate the demand, and cause inflation. *** some sector like commercial real state & fossil fuels will not fully recover because their outlook is compromised by e-commerce and clean sustainable energy companies.
TVC:SPXEducation
by Moshkelgosha
4
OIL10.4.20 I am generally satisfied with the video, but I wasn't clear at the end because I was worried about upload failures for the video. Please read this for a minute so the end of the video will be more clear: oil has traded lower to a support area, but it closed near the low of the daily bar. There will be some traders who think in terms of probabilities... think that the market is likely to move lower because it's a bearish swing that closed near its low>>>and they might be correct. From a risk reward point of view, you can find a relatively close structural stop... and because of this, even knowing that the market may have a slight edge for sellers... you may be willing to take the long trade. On the other hand, even if the market favors the price moving lower, there is no nearby structural stop to manage a short trade... and that may be enough to walk away from the trade. It is for me, personally. Bad R:R filters out lots of trades for me, personally. This is because I have a core belief that I will find better trades, and I don't need to settle for this trade.
NYMEX:CLZ2020Education
by ScottBogatin
3