Chart Analysis: Continuous vs Nearest Futures?

[heavenskrow]

Hi guys, i have a problem when doing chart analysis on crude oil or any other futures contract, but with crude oil it is a good example.

If I use the historically adjusted for continuous futures, it lists crude oil as major support around $45 a barrel which was taken out last month.
http://imgur.com/5L6Ik9D

Now if I don't adjust for continuous futures, I believe I am using the nearest futures chart??
And it then shows crude oil's chart as which has major support around $10 a barrel.
http://imgur.com/dtsCdM6

How do you guys normally analyze long term futures charts?

 

[KDASFTG]

Greetings H,

That's a relatively easy answer. Back in the 1980's whenever I needed a "Continuous Chart" of just about any listed commodity, I would just call up the Commodity Research Bureau "CRB" folks. I'd just tell them the time periods I was interest in, give them the chart details, and they would create a Wall Size Chart for me of that Commodity Contract. Back when I was only position trading, I just about had Commodity Charts going up and down all my office walls, from the floor to the ceiling...that's no joke.

I was single back then and nobody ever paid much attention to the crazy eccentric trading hermit, who just about covered his townhouse walls with Commodity Charts....smile. In any case, these folks are still in business, and you can just give them a call and they will create any "made to order chart" which they have data on. And they do have a lot of data, which I believe they also sell as well!

They used to send me their "CRB Yearbook" at the end of every year until I stopped, because I had those books starting in the 1950's stacked to the ceiling as well. I still have most of them....I hid them from my wife in storage (Over 800 Trading Books at one time).

In any case, just give them a call and I'm sure they can fill any request that you have. Their data has be vetted many times, and is still to this day referenced in many trade journals and newsletters. And the best part is...the charts are relatively cheap ($35 per copy) depending on size of course. I just called today...I couldn't resist the urge after I saw your posted thread.

Huuummmm....I've got some empty wall space here that could use a nice big WTI Crude Chart....smile.

Contact information:

Commodity Research Bureau
209 W. Jackson Blvd • Suite 200
Chicago, Illinois 60606-7110 • USA
Phone: 1-800.621.5271 or 312.554.8456
Email: info@crbtrader.com

I have no affiliation with the CRB, but they likely built a good portion of their business on my business many years ago.

Hope this helps.

KDASFTG

 

[bone]

Some charting packages offer a "consolidated" future contract option as well. It makes some of the adjustments that were described above. Not all, but some.