Yesterday I entered a position on DGAZ in my Robinhood account. I took this position on the 2hr time frame for a swing trade that is still ongoing as I write. 

Here is the comparison between NatGas and DGAZ at the time:

Natural Gas


So why did I make this entry? Well, a number of factors. Let’s look at /NG first

First, I saw /NG getting rejected from the 2.874 area with a BIG red candle (that had not yet closed), It was getting rejected where I had drawn a resistance line/zone where /NG likes to bounce or consolidate in.

Next, I looked at my two PFE indicators and stochastics. My long-term PFE (50, 50) still shows up momentum but /NG is pretty choppy and this may not be a fantastic indicator for it.  Stochastics had peaked as /NG got rejected from the zone as well.

Then I checked out the VZO, an indicator I’ve only just added recently. It shows that it’s peaked and rolling over. So even though there are some mixed signals there, the price action coupled with the VZO made me think this would be a good entry point.

Now a look at DGAZ

In general, DGAZ inversely mirrors the price action and indicators of /NG but it’s not exact. In this case, the VZO and short term PFE are both rounding up from the bottom of their charts, showing some upward sentiment for DGAZ.

I took the entry at 9:35am 03-19-19 at $88.18