Natural Gas Reverses and breaks above the 21 Day Moving Average

Natural Gas reversed direction today and closed above the 6 and 8 day moving averages. In a statistical anomaly, and sharp reversal, price did not touch the 21 day moving average. I closed my short trade for a small loss and I am now neutral. Even though the new Heikin Ashi Delta indicator has turned blue, there is resistance directly above in the form of the the 50 and 100 day moving averages, the 21 week moving average and the upper Bollinger Band.Strong resistance for sure.

Let me introduce the Heikin Ashi Delta indicator.

The first and most obvious are the red and blue areas. This represents a 3 day simple moving average on the delta between the opening and closing prices.

The second are the green and magenta dots on the edge of the areas. Dots are green if the moving average is above 0 and today's moving average is above yesterday's. If the moving average is above 0 but not above the previous day's moving average , the dot is magenta.

The opposite is true for magenta dots. If the moving average is below 0 and today's moving average is below yesterday's, the dot is magenta. If the moving average is below 0 but today's moving average is not below yesterday's, the dot is green.

The yellow line represents a double smoothed moving average on the Delta.

I'm still evolving my strategy using this indicator and will keep everyone posted.

Disclaimer: This post is for educational purposes only. Trade at your own risk.