how to trade natural gas

The EIA weekly Nat Gas storage report tells us how much gas has been stored by US authorities and also compares it to historical levels. The effect of this report is supposed to be felt immediately it is released, so nat gas traders might want to position to take advantage of any volatility that follows its release.

The EIA weekly report needs to be analyzed further to make sense:

✅If the increase in natural gas inventories is more than forecasted, then demand is weak and we could see falling gas prices. The same can be said if a decline in inventories is less than expected.

✅If the increase in natural gas inventories is less than the forecast, then demand is strong and we could see rising gas prices. The same can be said if a decline in inventories is more than expected.

Nat Gas Futures are traded on the NYMEX exchange which opens by 9 30 AM American time of 2:30 PM UTC+1. My strategy is the Pre-Opening hour breakout strategy so I box out the 1-hour range before the NYMEX open (1;20 - 2:30) and then trade the breakout of that range.

I have opened my first trade on NAT GAS and it is on profit now, my SL is just below the Pre-NYMEX upper edge. My exit strategy is to exit when I see the first red/bullish candle which must break the preceding green/bullish candle

I am taking profit/exiting here because of this bearish engulfing pattern that has just formed.

Very useful this thread, on gas trading brother. So, as per the bearish engulfing, you think we could see some downward push?

I wouldn't rule it out, theres some decent open interest around 2800 which is right under the bearish engulfing so I would certainly take a sell fif the downward push continues.

I would like to learn to trade gas too

Yesterday, price didn't fall again, instead it went up and started ranging

The NYMEX exchange has opened by 9 30 am American time or 2:30 PM UTC+1 and I have boxed out the pre-market hour range. Once price poked its head out of the box, I took a buy but price collapsed back into the box. My SL is placed below the last green candle that formed before 2:30 pm and has not yet been hit so I am still in the trade.

The trade has now gone into profit.

I got stopped out of this trade. Price faked at the pre-high and reversed back to the 4H range

It makes sense to buy because the EIA storage report for the week is bullish

NYMEX exchange has opened by 9 30 am EST or 2:30 pm UTC+1 and as usual I have boxed out the pre-market open hour. Price broke out of the bottom of the box, tried to go back in but rejected then started falling. This let a bearish engulfing pattern foot print which I took as my sell signal. There is also NAT GAS expiries at 2.75 which is below and this gives me additional comfort that price is going to fall. I am in a sell trade now

Good day yoks, I am interested in this, so where is going to be your profit target?

2.75 is my profit target because that is where the Nat Gas expiry is sitting, actually there are other NG expiries but 2.75 is the one that is in the money.

I got stopped out and switched my bias to a buy, there are over 300 active expiries at the 2.9 level so price should go upwards in that direction. I am now in profit

So we take profit when price gets to the 2.9 level, I think now you can adjust SL to secure some profit

Really loving this thread, especially to confluence of fundamentals and technicals.

Trade is still open, still in profit, price is nearly at the 2.9 level. But I will close here and take profit because there is a gap on the charts and price will likely fall to close the gap

EIA Nat Gas storage report just came out bullish so I took a long trade