Moving Averages of Energy Ftrs

Discussion in 'Commodity Futures' started by Engy, Jul 28, 2009.

  1. Engy


    Can someone weigh in on meaningful length for moving averages of energy futures prices? Be it for 1-M, 2-M or quarterly futures prices for energy commodities? Does it depend on what type of energy (light sweet oil, natural gas)? There has been some posting for 50day moving averages... is that usually the benchmark?
  2. 50 SMA is consistently watched across most markets. I would say that a combo of the 20/70 and 20/80 EMA's are good, b/c many TFF's buy and sell the crosses hoping to catch the start of a new bull/bear trend.
  3. Engy


    Sorry, what is meant by 20/70 and 20/80?
  4. spd


    i believe he just means a 20period stacked with a 70period, etc

    i dont think it really matters exactly how many periods you use. the number can pretty much be arbitrary as long as it fits in the picture you are trying to see. the fast ones will help you gage the short term, the slower ones will help you gage the longer timeframe.

    i think the only reason 50 and 200 MAs are so popular is because they are so popular, if that makes any sense.
  5. Right, 20 and 70, 80 period EMA. The only problem with the 50/200 SMA setup is that they don't cross very often, but if/when they do, it's watched/heeded/traded by many. I hope this helps.
  6. ScapGF


  7. I use 20/40 EMA and 200 SMA... Works ok in a trending market.