Oil and Natural Gas

At every half trend entry the MACD is in the direction of the candle but not below or above the zero line, can you tell us how exactly do you use read this indicator?

Hi Henry, here is the same chart but with red and aqua vertical lines showing when to enter into a trade. As you can see you can see trade entries occur only after the Renko brick has closed. Before the brick has closed you might get an arrow on the current Renko brick that will oscillate up and down according with the current value of the brick. The second chart shows an example of a Renko brick with its wick. As you can see the body of the previous brick had a low of 2.65 and had a high of 2.66. The next brick shown with an arrow started with an open price of 2.66. As you can see it closed at 2.67 but went as low as 2.641 at the bottom of the wick. Had the price gone to 2.64 it would have produced a red brick but, instead, it went to 2.67 producing a new aqua brick. Sometimes we get a bad signal like the Half Trend TT arrow on the aqua brick at the opening of today's session. The arrow and brick are correct but the next brick where we should enter into a trade is red and the FXBay MACD is negative so no trade. Bad signals occur mostly at the opening of a new session and I think that the 1 hour pause between session might be the cause. No strategy is perfect but with experience you will get the hang of it. I hope this helps.

NG went up 2¢ today with a low ATR that produced 3 winning trades. The opening session arrow produced a loss trade.

NG opened with a gap of 6 red bricks but after that it went smoothly. NG went up 8¢ today with a high ATR that produced a break even trade and two good trades.

NG went down 5¢ today with a high ATR that, like yesterday, produced a break even trade and two good trades. Please note that the last down arrow at the close of yesterday's session disappeared at the beginning of today's session as the Half Trend TT repainted.

NG went up 1¢ today but the below average ATR still produced a good trading day.

Looks hard to trade as the spread with 2,9 pips is almost the size of 3 bricks...how do you handle this?

With an average ATR of 13 pips nobody in his right mind would trade natural gas with a spread of 2.9 pips because it would be impossible to make a decent profit. The 2.9 pips spread is after the trading session has ended and is paused for one hour. Normally the average spread is about 0.5 pips and increases the session as the session is close to ending. Right now the spread is 0.6 at 10 minutes before the session closing.

NG went down 7¢ today and with average ATR producing one very good trade with 4 others being lousy.

Looks like my broker wants more business by lowering the spread

NG went up 7¢ today with a slightly higher ATR that produced 1 excellent trade, 1 good trade and 1 break even trade.