Natural gas is one of the most commonly-traded commodities out there. Being highly volatile, it presents a lot of opportunities for traders. Find out how to trade natural gas, what affects its price and some useful strategies.
Natural gas is one of the most volatile intraday assets. Intraday movements are often more than 2-3% (from minimum to maximum).
This indicator uses a strategy based on the directionality calculated for the dollar index futures .
The Natural Gas Trend Forecasting (prediction) indicator is based on a combination of the following indicators: Moving Average of different periods,
MACD , RSI . To filter signals, the quotes of the dollar index futures are used. This method allows you to optimize the indicator, and
to make the Natural Gas trend forecasting indicator more accurate, and the trading signals generated by the indicator more efficient in terms of
making trading decisions.
The indicator is suitable for intraday trading, timeframes H1, H4, and for trading between days: D1 timeframe.
The following factors affect the price of natural gas:
• Changes in weather conditions, in winter gas consumption increases and, as a rule, its price increases. Unfortunately, this rule is not always followed.
• Prices may change depending on the forecast of the coming winter.
• Economic growth, during economic growth, energy consumption increases, and then the price of them.
• Messages from the countries that are the largest producers of this product regarding the volume of its production or exploration of new deposits.
Natural gas is one of the most popular assets in the commodity market, the price of which is determined by the world economy.
There are too many factors influencing the price change, and for its successful forecasting it is necessary to take into account not only technical analysis signals, but also fundamental factors.