Natural gas has been basing for a few months now in what has become a very recognizable Wyckoff accumulation pattern. Complete with high volume on the start to low volume towards the end. Breakouts occur on LOW VOLUME in accumulation phases so don't look for volume to give a clue. Just like the AMEX:SPY and NASDAQ:QQQ markets did at the October bottoms. Remember everyone saying how low the volume was? Yes, same here. We also see a very recognizable MEGAPHONE BOTTOM specifically on BOIL. This is regarded as a bullish signal showing that the existing downtrend may reverse to start a new UPTREND. Further, we see evidence in arcs of a possible bottom. EW counts also suggest the bottom is in for now.
I have old eyes so the chart is too complex for me but I wholeheartedly agree with the idea and concept of the bottoming process. The mathematics of leveraging does complicate chart analysis and log scale is sometimes helpful. I have a very similar idea for BOIL and here is the link to my idea on natural gas without the leveraging. The megaphone pattern is here as well which typically is considered a sign of increasing volatility as time marches forward. I like volatility because it makes profits for a trader who can harness that "energy"
zAngus
⋅
Greetings, congratulations on working out how to post ideas. We hope you enjoyed the experience. Happy trading :)