ORANGE JUICE and the STARTING DATE of the seasonal windowMy last analysis, signal, about the calendar spread on the Orange Juice, gives me the opportunity to talk about the starting date of the seasonal window. From my experience, I never buy or sell a spread on the day of the starting date of seasonality.
The reason is that many traders do that (even without a graphical pattern or signal) and, even though the manipulation is low in the spread trading, however, there is and in that day is stronger. You have seen that on the Orange Juice. A 1-2-3 low of Ross and the price goes over the point-2 exactly the starting day of the seasonal window (green vertical line).
And then? Stop loss. For that reason, I put my entry signal, not after the 1-2-3 low of Ross, but after the Ross Hook that has never been overtaken by the price. Now, even though the seasonality is pretty short, there is a bullish divergence (price/RSI), and the breakout of the resistance (blue trendline) will give the signal for buying the spread.
Orangejuicespreadtrading
Spread trading on ORANGE JUICEAn interesting Spread proposed by SeasonAlgo on ORANGE JUICE, to be exact: BUY OJU18 (delivery September) and SELL OJX18 (delivery November). The bullish seasonal window started on August 1 and will end on September 2. Win: 14/15 (93%).
Graphically, the chart has formed a 1-2-3 low of Ross and, after, a Ross Hook. Buying the spread if the price will rise above the RH. Stop loss below the point 1 of the formation.
The only problem: FND/LTD September 4 (very close).
