Utilization of the "Visualization Indicator" (Part 18)

Utilization of the "Visualization Indicator" (Part18)

11Month19Friday, crude oil prices plunged. Crude oil futures fell to about1one and a half months low1barrel =75dollars per barrel.

Using the "Visualization Indicator," I graphed crude oil and the US-Japan stock indices.

The indicator used is the "8CFD Visualization IndicatorAnyversion. To make it easy to read, I drew crude oil in red, US stock indices in green, and the Nikkei225in yellow, each with a bold line. The chart is in15-minute intervals, with a time span of the past1 week.

There seems to be a correlation between crude oil prices and the US-Japan stock indices. When crude prices rise, stock indices rise as well; when crude prices fall, stock indices fall too.

The actual causal relationship is probably that increased economic activity raises stock indices as a result, and increased oil usage raises crude prices as activity grows.

Looking at the Nikkei225andS&P500, if both begin to rise, one trading idea could be to buy crude oil, and if both begin to fall, to sell crude oil.

The ability to glean strategic hints like in this example is a feature of the "Visualization Indicator."