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TFC Commodity Trading Forum

Re: Nat Gas/ Contracts Overlaid #2/Trades/Lee

Well I do think its very important. We know all the price action for some time now has been in a very bearish downtrend. A cross over of a nearby month above a further out month would show a 'change' in contango and actual price demand for a nearby month. I'm no professional strategist with this type of thing but that is definitely how I would see front months suddenly outperforming back months in my opinion. So I'm 'assuming' your chart is a ratio chart. Same thing but with multiple contract months with some active and others not much ever traded I prefer all 8 of them overlaid myself. The ratio chart could be used using the higherst open interest months. I know Jan is a major NG month not Dec. And Nov another active month. Even the June and July months are active. So one could make up some ratio charts of these nearby active months compared to Nov and Jan which would tell you of a change in trend as well. Same thing basically I would think using ratio charts.