Energy commodities trading strategy example

Energy commodities ETF shares are part of the global list of exchange traded funds available for trading. These commodity ETFs offer another opportunity to invest into commodities or use these energy ETF shares for active investing or trading – which is what I do.

There are several different trading strategies to trade energy ETFs. Some are based on fundamental opinion, anothers on technical analysis. I like to have some Global macro overview about energy commodities I create personally for my usage in a portfolio of position trades.

But to decide what energy exchange traded funds to trade or to decide whether to go long or short on the oil ETF I use technical analysis. This unique combination of global macro analysis with technical analysis is the base for trading methods and portfolio strategies I use in my investment approach in position trades that are used for mid-term time horizons like few months.

My swing trades that I trade in my active portfolio last only a few days or weeks and are based on technical analysis only. This technical part of my stock market strategies is based on reading of stock charts and practical usage of technical analysis, especially relative strength. Here are steps to make profitable trades with energy based ETFs.

Check situation in commodity complex

I use a broad based commodity fund with symbol DBC tracking general Commodity index.

broadcommodities etf trading strategy chart example

Check ETF shares tracking commodities
like Crude Oil, Natural Gas, Heating Oil

DBE Energy commodities fund is a good option for this task.

Energy etf trading strategy chart example

Check individual commodities ETF shares and their situation

Compare them with the charts checked in the previous steps and decide what is the best way to trade them.

Oil etf trading strategy chart example
natural gasetf trading strategy chart example

Commodity online trading info that we can see on the charts

The global commodities fund is breaking support level. There is plenty of space for a possible down move. It looks like commodities are going to be starting a downtrend. So we will prefer short sell trades.

Individual trade setups for specific exchange traded funds then could be based on stock charts pattern and other stock technical analysis tools.

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