Monday, January 24, 2011

UNG Watch

The exchange-traded fund that tracks natural gas prices (UNG), fell sharply one day after a price-channel bull breakout, triggering closure. The stop/loss was set at $6.26, or 5¢ below the low on breakout day.

The decline brings UNG back within a sideways trend that has held force since late October. See my write-up posted Saturday for price levels.

phase pfeppstrend

In this case, the complex suite of exit rules that I use in price-channel trading has proven more sensitive than the PFE/PPS technical analysis, which remains in bull phase, unphased by the price drop.

Table Abbreviations:
  • pfe - Location of the polarized fractal efficiency line.
  • pps - Person's Proprietary Signal mode.
  • trend - Trend of the polarized fractal efficiency line.

Key to the PPS/PFE tables
phase bull phase
bear phase
pfe +100 and above
+50 to below 100
0 to below +50
below 0 to above -50
-50 to above -100
below -100
pps bull confirmation
bear confirmation
trend uptrend
no trend

More on the PFE/PPS analysis

Read a detailed explanation of the analytical tools and how they’re used, including trading rules.

Tim Bovee, Private Trader tracks the analysis and trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment.

No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decision decisions for his or her own account, and take responsibility for the consequences.

No comments:

Post a Comment