Avoid a common error with commodity Exchange Traded Products (ETPs) by not attempting a long-term buy and hold strategy. ETFs like UNG
, and similar ETPs suffer from decay, therefore not fully capturing movements of the underlying commodity. Because of this decay, weekly indicators such as MACD
flat line to practical irrelevance.
My analysis focuses on shorter timeframes, daily or less, where UNG
has similar Elliott Wave
patterns to the underlying.