Natural Gas technical analysis with a trade plan example

  • A trading setup with high reward vs risk on NatGas Futures.

Natural gas technical analysis and trade plan examples
Natural gas technical analysis and trade plan examples

A trade idea can come from very simple setups that have 2 distinct things:

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.

Chart  Description automatically generated

- 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

NameValueAction
Relative Strength Index (14)58.432Neutral
Stochastic %K (14, 3, 3)78.013Neutral
Commodity Channel Index (20)106.384Sell
Average Directional Index (14)19.087Neutral
Awesome Oscillator0.989Neutral
Momentum (10)1.104Sell
MACD Level (12, 26)0.233Buy
Stochastic RSI Fast (3, 3, 14, 14)83.255Neutral
Williams Percent Range (14)−24.827Neutral
Bull Bear Power0.806Neutral
Ultimate Oscillator (7, 14, 28)57.769Neutral

Natual Gas futures moving averages

NameValueAction
Exponential Moving Average (10)6.879Buy
Simple Moving Average (10)6.833Buy
Exponential Moving Average (20)6.627Buy
Simple Moving Average (20)6.500Buy
Exponential Moving Average (30)6.569Buy
Simple Moving Average (30)6.194Buy
Exponential Moving Average (50)6.675Buy
Simple Moving Average (50)6.401Buy
Exponential Moving Average (100)6.898Buy
Simple Moving Average (100)7.372Sell
Exponential Moving Average (200)6.661Buy
Simple Moving Average (200)6.965Buy
Ichimoku Base Line (9, 26, 52, 26)6.362Neutral
Volume Weighted Moving Average (20)6.432Buy
Hull Moving Average (9)7.330Sell