Heating Oil Commodity Momentum Indicators Moving Average Convergence Divergence

HOUSD Commodity   2.28  0.04  1.79%   
Heating Oil momentum indicators tool provides the execution environment for running the Moving Average Convergence Divergence indicator and other technical functions against Heating Oil. Heating Oil value trend is the prevailing direction of the price over some defined period of time. The concept of trend is an important idea in technical analysis, including the analysis of momentum indicators indicators. As with most other technical indicators, the Moving Average Convergence Divergence indicator function is designed to identify and follow existing trends. Momentum indicators of Heating Oil are pattern recognition functions that provide distinct formation on Heating Oil potential trading signals or future price movement. Analysts can use these trading signals to identify current and future trends and trend reversals to provide buy and sell recommendations. Please specify Fast Period, Slow Period and Signal Period to execute this model.

The output start index for this execution was thirty-three with a total number of output elements of twenty-eight. The Moving Average Convergence/Divergence line is a predictive momentum indicator that shows the relationship between Heating Oil price series and its peer or benchmark.

Heating Oil Technical Analysis Modules

Most technical analysis of Heating Oil help investors determine whether a current trend will continue and, if not, when it will shift. We provide a combination of tools to recognize potential entry and exit points for Heating from various momentum indicators to cycle indicators. When you analyze Heating charts, please remember that the event formation may indicate an entry point for a short seller, and look at other indicators across different periods to confirm that a breakdown or reversion is likely to occur.

Learn to be your own money manager

As an individual investor, you need to find a reliable way to track all your investment portfolios' performance accurately. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing you full analytical transparency into your positions, our tools can tell you how much better you can do without increasing your risk or reducing expected return.

Did you try this?

Run Price Exposure Probability Now

   

Price Exposure Probability

Analyze equity upside and downside potential for a given time horizon across multiple markets
All  Next Launch Module

Heating Oil pair trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Heating Oil position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Heating Oil will appreciate offsetting losses from the drop in the long position's value.

Heating Oil Pair Trading

Heating Oil Pair Trading Analysis

The ability to find closely correlated positions to Heating Oil could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Heating Oil when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Heating Oil - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Heating Oil to buy it.
The correlation of Heating Oil is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Heating Oil moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Heating Oil moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Heating Oil can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching