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Strong Trend for Lumber

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The trend is down and therefore it is a short position that one must be considering with Lumber if those who are interested have not yet opened such a position. 

One thing to remember is that with trend following you will not open or close a position at the most optimum price points. The aim is to catch as much as possible of the 'middle part' of the trend. 

Lumber_20180902_09_49.png.2b32279d627eeb8408e7b92a29a75586.png

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There certainly is a strong trend in Lumber and it is downwards. The short trade is the only trade right now. For those who got in well done. For those who have not then be careful as Lumber is tanking far quicker than the time it took to reach its recent peak. Short trades normally last a shorter period than long trades. 

The chart below shows that Lumber is clearly below its 20 day, 50 day and 100 day moving averages.

Lumber_20180912_18_58.png.4c00556e8f2a5fbbb3c996300b29c175.png

 

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Lumber is playing out exactly how I had envisaged. I attach a chart below to nicely illustrate this.

Lumber_20181020_09_19.thumb.png.2756a7d54816c5106ecd5c4009b33d55.png

Lumber  (Timber) is what I would deem as a more 'defensive asset' which tends to hold its price well during market turmoils. Of course it is not as defensive as cash and fixed interest!

Therefore once this downwards pressure is over and it will then I can easily see another couple of years of Lumber prices slowly rising. This is when one must think about a long term trade in Lumber and just 'letting it ride'. However, one must wait for the downward move to conclude and then wait for a clear trend reversal to enter.

For now the only trade is short on Lumber so for those of you holding well done. 

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Lumber seems to be going through a consolidation phase. It is holding up rather well.

The chart below highlights this point.

Lumber_20190117_08_04.thumb.png.43d75be09973c161a8b76c4b9e46e7c4.png

I shall be keeping a close eye on the price action of Lumber. 

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The Lumber price action is starting to get very interesting. 

Lumber_20190122_20_01.thumb.png.2298c656d9f16ebc30ff83f7823275db.png

It is slowly creeping upwards. It is not making the headlines or making any noises but it is my 'Silent Assassin' when it comes to a trade. It is not the 'sexiest' of Commodities but it was one of my best performing trades of recent times both on the 'long' and 'short' trades.

It is at a critical juncture right now but it is worth keeping an eye on as it can give a good indicator to the US housing market too! 😉

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Lumber is one of my favourite commodity trades over the past couple of years and it is starting 2019 rather well. The 'daily' chart is looking exciting!

Lumber_20190125_17_40.thumb.png.8ce80171b83cdc5bd496c7760ce531dc.png

 

Ignore at your peril! 

No seriously the Lumber trends are special if you can get an opportunity to ride them.

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Stunning performance from one of my favourite commodities of the past couple of years - Lumber.

It is up 1166 points at the time of writing this post.

The chart is trying to show a 'rocket' taking off!

Lumber_20190129_16_53.thumb.png.db59db024df534dc9dee0e59be3f2fc9.png

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@cryptotrader,

One must know their audience.

For professional traders who are experienced it does not matter whether I post line or candle charts as they will pay little attention to my charts. For new and inexperienced traders one must keep things as simple as possible and try and articulate matters in plain simple English including charts. 

I get many contacting me using IG's messaging service so I understand and appreciate my followers and those who read my posts. Therefore I deliberately keep things simple and my charts are no different. I get a lot of positive feedback from new and inexperienced traders who prefer and enjoy my simpler to follow posts. So I am catering for the audience that read my threads and posts. 

Line graphs present less information than candle charts so it depends on what type of trader you are as to which you decide to use and which you prefer. It is a personal choice but one that will be derived from your trading style and strategy. I find that line charts are a lot simpler and removes all the 'clutter' and 'noise' from the charts some of which can confuse you and not necessarily make it any easier for you to trade effectively or profitably. I tend to use a 'daily' timeframe when I trade trends and my position is held for as long as there is a trend. Therefore for me I do not need to see all intricate details which can be seen on candle charts.

As a higher timeframe trader I prefer line charts as I want to look at a chart and get a sense of direction of the trend. I will switch and look at different timeframes but my 'default' is the 'daily'. I think more shorter time frame traders may prefer or have a use for candle charts. I find that the line chart provides a more clearer and visually simpler picture but that is just my personal preference. I think day traders may prefer candle charts but each to their own. 

Which do you prefer and why?

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The trend is your friend as they say!

The trend is getting stronger and stronger and momentum is really building. 

The price action is upward and sharp.

Lumber up another 1500+ points today.

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On ‎29‎/‎01‎/‎2019 at 21:11, TrendFollower said:

@cryptotrader,

Which do you prefer and why?

candlestick works for me. Seems to give a whole load more info and when you scroll out to see a larger time frame it naturally going to a line anyway.

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@cryptotrader,

The question now is can Lumber after any anticipated pullback continue upwards?

I do not know the answer but the price action will certainly tell us going forwards.

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Lumber is looking to resume it upward trajectory and is setting itself up nicely from the charts for its next move upwards. 

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