BOIL (3X Natural Gas ) Overnight Trade RecapAs a triple leveraged ETF BOIL is highly volatility and typically has a good range
even if the overall price changes only a small amount from one day to the next.
While these overnight day trades are typically conducted on the 3 or 5 minute time
frame, here a 15- minute chart is shown. Because BOIL is tracking natural gas
futures and the futures markets are around the clock , BOIL often has movement
after-hours and in the pre-market while futures markets are active.
In this example, the chart is dressed with double Bollinger band setup with
deviations of 1.618 and 2 618 which are Fibonacci numbers. Relative volatility
and relative volumes are indicated as well to be better attentive to reversals
or trending amplitudes.
In this example at about 12N on yesterday 7/24, price dropped out of the bands
volume and volatility went red to green and the candlesticks formed a morning
star pattern. This is the entry. The stop loss is placed just below the lowest bottoming
wick in the pattern. Today, in the premarket, when the price rose to outside the upper
trade zone and green bars on the volatility and volume indicators fell quickly, the
trade was closed for a realized profit of 4.7%. About 90 minutes later, another
long trade was set up for a more than 4% five hour day trade.
Rinse and repeat DYODD !
