All information is for educational use only and is not investment advice. There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
Welcome to our quick educational Top Down Market Analysis for Natural Gas. We are beginning with the monthly bars chart. We can identify a somewhat of balance area here after we broke the upper bracket area. The new month opened far away form last week's close.
Let's zoom in to the weekly bars chart now. The new week opened with a gap up and we are inside of the weekly balance area. Test of the balance area high should be probable. We'll see what will happen there. Last week has ended the three week one-time-framing down market with an outside bar. The outside bar was a first heads up for a potential change. Actually we took out this week's high with this gap up now.
We are also opened above the short term trend EMAs 5, 10 and 20 installed on the weekly bars chart.
Moving forward to the daily chart we can observe a five day one-time-framing market including today's gap-up day. Also, we are far away form the short term trend EMAs.
Gap days tend to be rotational, this means we are lean us on the value extremes like DVAH and DVAL to trade from one extreme to another until we break out of the range. We can nicely observe this behavior on the intra-day VWAP from today.
Be careful to trade this market on a intra-day perspective but it is great for analysis purposes to understand the higher time frame story and to improve the feeling of identify the path of least resistance. Sometimes it is great to play around with some other markets to sharp our senses with our analysis tools.
Stay happy!
What is VWAP, VAL, VAH, Bracket etc?
Take a look into our Trading Glossary.
You want learn more about our Trading Methodology?
Visit our community site or website to learn more about how we trade day-to-day. With an elite membership for example you can read some more indepth educational analysis posts and download our chart templates for Sierra Chart and NinjaTrader.
Take a look into our Trading Glossary.
You want learn more about our Trading Methodology?
Visit our community site or website to learn more about how we trade day-to-day. With an elite membership for example you can read some more indepth educational analysis posts and download our chart templates for Sierra Chart and NinjaTrader.
