NGAS
A Renko Strategy for Trading - Part 9This is intended more as educational material on a strategy for using renko charts. To begin with, I'll be using USOil in the examples but will include other markets as I continue through the series. The material is not intended to prescribe or recommend actual trades as the decision to place trades is the responsibility of each individual who trades as they assume all risks for their own positions and accounts.
Chart setup :
(Part 1)
Double Exponential Moving Average (DEMA) 12 black line
Double Exponential Moving Average (DEMA) 20 red line
Parabolic SAR (PSAR) 0.09/0.09/.23 blue circles
Simple Moving Average (SA) 20 blue line
(Part 2)
Stochastics 5, 3, 3 with boundaries 80/20 dark blue/light blue
Stochastics 50, 3, 3 with boundaries 55/45 red
Overlay these two on one indicator. Refer to 'Part 2' as to how to do this
(Part 3)
True Strength Indicator (TSI) 14/4/4 dark blue/ red
Directional Movement Indicator DMI 14/14 ADX-dark green, +DI-dark blue, -DI-red
Renko Chart Settings
Crude Oil (TVC:USOil): renko/traditional/blksize .05/.10/.25
Natural Gas (ngas): renko/traditional/blksize .005/.010/.025
Soybeans/Wheat/Corn (soybnusd/wheatusd/cornusd): can use the ngas setup
S&P 500 (spx500usd): renko/traditional/blksize 2.5/5.0/12.5
Euros (EURUSD): renko/traditional/blksize .0005/.0010/.0025
Update CHK: Position is hedge but performing VERY wellChesapeake is likely to see some real buying into April if section 232 tariffs on Uranium are passed (high probability)
Update USOIL: I bought put on Crude Oil65% of crude oil demand is derived from gasoline, with economic conditions weakening we are now switching from supply side issues to potentially demand-side issues. Watch for lower levels of demand for Crude over the coming weeks.
UPDATE: Why is USOIL rallying?Would love to hear your perspective in the comments sections below!
Have a wonderful day!
Natural Gas needs a little push to setup a breakout!As you all know by now, I believe this is an event-driven outcome due to section 232 tariffs on Uranium. The decision will be made in April with a high probability it is passed. The blowback is likely higher electricity costs from Nuclear, natural gas is an alternative base load energy.
NGAS keeps stairstepping up but when will the elevator down comeHere's my play for $NGAS, pretty simple and straight forward. The last level is the only level i would long myself, easiest SL and best R:R.
WEEKEND REVIEW: Natural Gas is oving as expected, target >$7Our wave 2 low from support looks to be holding strong. I believe the wave 3 has started and section 232 tariffs on Uranium as likely to be the driver moving forward.
The target for Wave 3 is above $7, section 232 announcement is in April.
UPDATE: Nat Gas part II, 200% upside in CHKI don't like to post about single equities due to the balance sheet risk they propose, this is a company I have bought to take advantage of the outcome of section 232 as mentioned in the earlier update on Natural Gas.
manage your risk effectively and don't be a blind sheep, this is not advise!
UPDATE: Option BUYERS in Nat Gas will win this round The catalyst for nat gas moving forward is Section 232 tariffs on Uranium, the decision is on April 19'
NATTY, is the decline over OR is one more drop imminent?read the box on the chart and see if you concur? I'd be interested to know whether people are moving more toward the bullish camp right now or not?
Good Risk to reward ratio buyPrice have rejected a few times around that support line. Good R/R buy.
Possible bottom in Nat Gas Nice entry right here for a long. Stops need to be kept wide nat gas as it is an extremely volatile asset.
Natural Gas Forecast and Trade OpportunityLow storage level (relative to historical norms) is making the price extremely susceptible to changes in the weather models. Instead of pushing the price higher gradually by 5-10 cents a week, bullish changes in the short-term weather models create fear, which results in double-digit rallies over the course of a single trading session, as happened on Monday, January 14.
The bullish changes in the weather models are resulting in an extremely exaggerated bullish change in natural gas prices. Prompt-month contract price can reach high levels and then correct sharply even if the weather turns only slightly bearish. In other words, prompt month contracts (February contract and, to a lesser degree, March contract) are very speculative and very risky to trade right now.
The best strategy in Ngas February and March contracts can be buying the dips at the strong support levels.
Looking at the NGAS February contracts, the price is testing the EMA 50 and Ichimoku Cloud support. We also see a bullish flag formation on the H4 Chart.
We will try Long at this support.
NGAS Gartley H4Hello everyone! Today we have spotted a gartley pattern spotted on the NGAS h4 chart! Feel free to leave your questions below in the comments section!
