Welcome to the TFC Commodity Trading Forum.
Please feel welcome to join in on these informative ongoing discussions about trading futures and commodities.

The Trading Forum is intended for the open discussion of commodities trading. The management of this Forum does not agree or disagree with the ideas exchanged, and does not exert editorial control over the message posted herein. Read and post at your own risk. The risk of loss in trading or commodities can be substantial. We discourage the use of this Forum to promote trading that is acknowledged to be risky. Please note: many links from the Forum lead to pages on other web sites. We cannot take responsibility for nor endorse the information presented on those sites.

TFC Commodity Trading Forum

Re: March Nat Gas/More New Lows/Lee

One handle means just what you posted from what I understand. A price from 1.00 to 1.99. The handle is just reference to the dollar amount it begins with. Easier and clearer than saying the 1 dollar range as it covers the entire range with the reference to 'handle' without implying it is closer to 1.00 than 1.99 or any other price point. That's my take on it fwiw. The March contract is "stretched" quite a ways away from the falling 20ema and if you look at the chart think of price being attached to the 20ema with a rubber band. Once it gets stretched too far it snaps back like a sling shot. Like coming back to the 'mean'. It even tends to poke above the 20ema and can tag the 50ema if close enough or a previous support level that broke down. The chart is telling you what it is most likely to do 'soon'. No guarantee what or when but price will come back to that 20ema as it always does. That is why I said 'if short' to have a stop above price with the current stretch out. I wouldn't trade it long as it is nothing more than a countertrend trade and they have a history of failing. Catching a falling knife can get bloody.