Market: $CL_F and $GC_F
Chart Analysis: The concerns in Europe continue to wreak havoc on the global market place and today it was Oil’s turn to feel the effects. NinjaTrader’s Chart of the Day displays Oil Futures ($CL_F) overlaid on Gold Futures ($GC_F) for a comparison study of these two highly volatile markets. As of 12:30 U.S. ET, light sweet crude futures have already lost over 3% of its market value and broke out of a decent uptrend channel after news of poor demand from Europe. Today’s PMI report shows strong signs that the entire Euro Zone will return to a recession at the end of the year and oil traders took notice. We decided it was not enough to simply plot these two markets so we also applied two of NinjaTrader’s most widely used indicators from our 100 plus indicator library. The Regression Channel indicator in blue will automate a channel based on user-defined property settings and can be used to identify an up or down trend. Next, we apply the ATR (Average True Range) for each instrument to display rising daily average range in Oil as compared to Gold futures. After applying these studies, Day traders may be able to spot market opportunities with more confidence and take advantage of the most recent price action for intra-day profits. This chart can be created for free using NinjaTrader 7 and FREE end of day data from Kinetick.
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