|Natural Gas Review|
Natural gas's overall trend, revealed by trends of price, leverage, and time, are defined and discussed in the The Matrix for subscribers.
Primary trend (LeadM) alignment defines a power multi-month rally since 5/1/2016 (see The Matrix). Traders follow these trends as long as alignment and TIME permit.
The cycle of TIME, a comparisons of alignment (upside or downside) against all previous impulses in the form of Z-Scores, adjusts the risk of the trade. BuST readings above 1.96, for example, suggests that the impulse is longer than 95% of all past observations. Traders buying or selling when BuST or BrST climbs 2 are betting on the greater fool theory, a poor long-term trading/investment strategy.
DEFINING THE TREND
Daily (Tertiary) Trend = Upside Alignment, The cycle of TIME = -0.3
Weekly (Secondary) Trend = Downside Alignment, The cycle of TIME = 0.1
Monthly (Primary) Trend = Downside Alignment, The cycle of TIME = -0.3
The best rallies or declines come when the daily, weekly, and monthly trends agree or align. This setup is called triple alignment.
The cycle of TIME suggests cause building. Cause building the precursor to mark down (decline phase) and mark up (rally phase). The direction of alignment decides the outcome.
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These trends are defined in The Matrix for subscribers.
Market-driven money flow, trend, and intermarket analysis is provided by an Insights key.