BOIL
BOIL is the #X leveraged ETF for Natural Gas while KOLD is it inverse.
On this 30M chart I setup the ration between BOIL and KOLD.
This is to find precise swing entries without a lot of work for those only trading part time like myself.
At the highs, BOIL has peaked relative to KOLDAccordingly, this is the time to exit BOIL and enter a position
on KOLD. Conversely, when the ratio is at an inflection bottom, a trader should exit KOLD
and enter a BOIL position.
This chart shows several patterns including:
a double or triple top which may breakdown as there is a newer cup and handle potentially breaking
out above the handle in continuation of the prior uptrend. It the present chart, the Bollinger Band basis line
the uptrending of its boundaries and the MACD all favor the probability of an uptrend., the spot markeri
All in all, I am waiting to buy BOIL since natural gas is being liquified and shipped to Europe to
make electric power to supply to air conditioner for the long hot summer. XNGUSD has had dramatic
action in the past couple of months, all good for BOIL's price action.
Three evening stars or three-bar plays marked with red down arrows.
If not in a position at present, the chart should be observed for the cup and handle pattern completion
towards a resumption of the uptrend. IF so, a BOIL position could be entered.
If it fails the triple top controls the price action and
a KOLD position could be entered.
This chart demonstrates the importance of looking for patterns to help guide
higher probability setup.