FIG. 1: THE STANDARD FORWARD CURVE; CREATED BY USING THOMSON REUTERS HISTORICAL DATA.
The above chart depicts today’s price of each contract traded. As you can see from the scale, the chart starts with March 2013 contract and ends with the mid 2019 contract.
You can combine this type of forward curve chart with a “normal” futures chart with Tradesignal. Hence, you are able to display the current and historic prices of the current futures contract and also see the prices of the upcoming contracts in one chart (contango or backwardation for your futures contract).
Open up a chart of any futures contract. This can be a continuous contract or a dedicated contract. In my case I use CLc1, a RIC from Thomson Reuters.
- 01 Go to your list of indicators and look for the “forward curve” indicator;
- 02 Drag and drop this indicator onto the chart. Now Tradesignal will take some time to process all contracts of these futures and derive the relevant forward curve.
- 03 When you see the forward curve – simply drag and drop it from its sub-chart to the main chart window respectively drag and drop it on the same axis where your futures is. This gives you the following graph: