3 different charts of Brent crude Oil?

Discussion in 'Commodity Futures' started by ysfx, Oct 31, 2019.

  1. ysfx


    I have never traded futures before, because I couldn't understand how different charts of the same trading instrument are related to each other. For example below you can see 3 continuous charts of Brent crude oil. I have marked down certain highs and lows so that one can see the differences between them.
    One can see that differences are not just a few ticks.
    Can anybody explain what is going on here?
    I heard from one trader who works in a London based futures prop trading firm that they all use 'back adjusted continuous futures charts' for trading, as all traders in prop firms do. So they all see the same support resistance levels. I also want to have these support resistance levels on my charts, but not sure where to find the correct charts to draw levels from and actually to trade off of.
    • prt.PNG
      File size:
      148.8 KB
  2. Cannon_Trading

    Cannon_Trading Sponsor

    would love to see larger images of the charts to possibly shed some light.
    Yes, if you use continuous charts or adjusted continuous charts you will see slight differences in the daily/ weekly even monthly charts.

    Since future contracts have expiration dates ( unlike stocks) and lean hogs for December delivery will have a diff. trading price than hogs delivered in February, the charting software has to provide ways to "smooth out the transition"

    here are the options I have when using my CQG:

  3. Overnight


    Looks like different exchanges.

    One is NYMEX Brent (financial futures), one is ICE Brent, and one is a CFD of Brent, which isn't even an exchange, heh
    Last edited: Oct 31, 2019
    Zor_Champ, MattZ and Cannon_Trading like this.
  4. MattZ

    MattZ Sponsor

    Says right on the chart CFD
  5. Overnight


  6. MattZ

    MattZ Sponsor

    Nope. There are Market Makers but it's an OTC market.
  7. Overnight


    Exactly. So what are you hacking on me for? I typed that CFD is not an exchange.

  8. MattZ

    MattZ Sponsor

    Not at all. I thought the image letters were very small, so I added an image to show to the OP your point where the market is a CFD.
  9. Overnight


    Yes sir. Time for some CBD. Getting legal more and more!
    MattZ likes this.
  10. easymon1


    cued to NG island reversal
    #10     Nov 13, 2019