Perfect Soybean Oil

Soybean Oil futures


This blog post is relation to the H&S Soybean Oil pattern identified within the post from September 12th

The weekly Soybean Oil continuation graph has completed one of the most perfect textbook H&S bottom patterns I have seen in 41 years following futures markets.


Perfect Soybean Oil - Factor Trading - Peter Brandt

A perfect H&S bottom pattern contains the following elements:

  • H&S is undeniable in its identification
    • Not only is the 27-month H&S on the Soybean Oil graph undeniable, but the WBB decline in mid Aug 2014 along with the WBB advance this past week represent rare “pattern walls.” In other words, these WBBs clearly demarcate the pattern from all other price
  • Flat or slightly up-slanted neckline
    • The neckline is horizontal. The orthodox highs of the left shoulder and right shoulder are only 15 ticks different.
  • Symmetry in height between the elements
    • The left shoulder and right shoulder lows are almost identical (dashed line) – only four ticks
  • Symmetry in time between the elements
    • The length between the WBB left-wall in Aug 2014 to the mid- point of the head in mid Oct 2015 is 60 weeks. The length between the mid-point of the head in mid Oct 2015 to this past week’s WBB right-wall breakout is 60 weeks
  • A decisive pattern completion
    • The breakout on Wednesday occurred with a powerful 262 point

Factor is long and I am interested in increasing leverage if the market can dip back to the 36.11 level (Mar contract). The Soybean Oil target is 44.50 to 45.00. If such a dip occurs the risk on the entire trade will be 130 BPs. My potential gain is 900 to 1,000


Perfect Soybean Oil - Factor Trading - Peter Brandt



Factor Membership


Peter Brandt is a 40+ year veteran of trading.  Through his Factor Service, members receive:

checkTrading Commodity Futures with Classical Chart Patterns: A free PDF copy of Peter’s classic out-of-print book
checkWeekend Update: 10-16 pages full of in-depth chart analysis and charting commentary
checkAlerts: Detailed information on specific charts as unique opportunities present themselves
checkMarket Commentaries: Communications on specific topics regarding market speculation and trading distributed periodically
checkWebinars: Monthly member-only webinars where Peter speaks about current conditions and fields member questions
checkKnowledge Center: Fast and easy access to current and archived content from Peter’s extensive library of content
checkAutomatic notifications: Email and social media notifications are sent out when new content is published

View your Factor Member options here. You could consider your membership in the Factor Service as just one more trade. If the Factor Service is not of value to you, well, it is just one more trade that did not work.   Through the Factor Service I endeavor to alert novice and aspiring traders to the many pitfalls you will face – and to offer advice on overcoming those pitfalls. My goal is to shoot straight on what trading is all about.  For more information watch my 30 minute webinar where we cover the Factor service in depth.

I hope you will consider joining the Factor community.


Factor Trading - An Introduction