Natural Gas technical analysis with a trade plan example
A trading setup with high reward vs risk on NatGas Futures.
A trade idea can come from very simple setups that have 2 distinct things:
A reason for the trade (technical analysis or fundamental analysis).
A defined risk vs. reward setup.
In this video you can see how a trading idea on Natural Gas futures came from a simple upward channel that could be seen as a bearish flag pattern, which generally indicates a further downward move to follow after a breakout. So, this gives the reason for the trading opportunity.
- 4hr candle Natgas futures showing a bear flag and a trade plan example to short. Chart of NG! by TradingView.com
Next, you will see how you can define and limit your risk based on different parameters. You can be more conservative increasing your stop loss distance and putting it behind strong levels sacrificing some reward, or you can be more aggressive and look for an immediate momentum in your favour with a tighter stop loss that increases the risk to reward ratio.
Watch the video below to learn how to find and structure a trading idea on natural gas futures on 30 Nov, 2022
Keep yourself updated on the latest developments in the markets following forexlive.com and visit forexlive.com/technical-analysis to find more trading ideas.
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Oscilators and moving averages for Natural Gas futures as of 10 Nov, 2022:
Natural Gas oscillators
Name | Value | Action |
---|---|---|
Relative Strength Index (14) | 58.432 | Neutral |
Stochastic %K (14, 3, 3) | 78.013 | Neutral |
Commodity Channel Index (20) | 106.384 | Sell |
Average Directional Index (14) | 19.087 | Neutral |
Awesome Oscillator | 0.989 | Neutral |
Momentum (10) | 1.104 | Sell |
MACD Level (12, 26) | 0.233 | Buy |
Stochastic RSI Fast (3, 3, 14, 14) | 83.255 | Neutral |
Williams Percent Range (14) | −24.827 | Neutral |
Bull Bear Power | 0.806 | Neutral |
Ultimate Oscillator (7, 14, 28) | 57.769 | Neutral |
Natual Gas futures moving averages
Name | Value | Action |
---|---|---|
Exponential Moving Average (10) | 6.879 | Buy |
Simple Moving Average (10) | 6.833 | Buy |
Exponential Moving Average (20) | 6.627 | Buy |
Simple Moving Average (20) | 6.500 | Buy |
Exponential Moving Average (30) | 6.569 | Buy |
Simple Moving Average (30) | 6.194 | Buy |
Exponential Moving Average (50) | 6.675 | Buy |
Simple Moving Average (50) | 6.401 | Buy |
Exponential Moving Average (100) | 6.898 | Buy |
Simple Moving Average (100) | 7.372 | Sell |
Exponential Moving Average (200) | 6.661 | Buy |
Simple Moving Average (200) | 6.965 | Buy |
Ichimoku Base Line (9, 26, 52, 26) | 6.362 | Neutral |
Volume Weighted Moving Average (20) | 6.432 | Buy |
Hull Moving Average (9) | 7.330 | Sell |