Futures trading volume and open interest


Open Interest and volume analysis can often be a leading indicator when it comes to identifying market turns and reversals. Especially immediately before a new trend or during strong trends, an increase in Open Interest indicates that a breakout is likely or that the trend will strengthen since more investors are looking to enter a trade. Price volatility increases and just keeps moving sideways.

When more investors enter positions, and more interest exists, it shows consensus with regards to price movements. Technical analysis also uses volume information to identify potential reversals — if during an uptrend volume declines, and momentum falls, it signals that fewer people are buying into the trend futures trading volume and open interest conviction is declining. Futures traders have the benefit of having access to volume and Open Interest data. Before the recent bearish phase, price moved higher for a few days, but volume and Open Interest were very low — both metrics saw a significant drop. In order to form a sophisticated trade analysis and make reasonable assumptions about what is happening on your charts, being able to combine the information provided by volume, Open Interest and price can give traders an extra edge.

When more investors enter positions, and more interest exists, it shows consensus with regards to price movements. Volume shows the amount of trading activity in a given market on any given day. During consolidations, volume and Open Interest is typically low, declining and below futures trading volume and open interest. A new trend is supported by rising volume and increasing Open Interest; fading momentum after a trend is foreshadowed by a drop in Open Interest and a turn in volume.

Optimus Futures is a leading online futures broker that caters to traders seeking fast execution and stable data feeds combined with aggressive margins and deep discount commissions. Particularly at the key support futures trading volume and open interest resistance levels, a change in Open Interest and volume can be probable predictors and warn traders in advance that market sentiment is undergoing a change. Once price started to move lower, volume picked up fast and Futures trading volume and open interest Interest followed shortly after. About Optimus Futures Optimus Futures is a leading online futures broker that caters to traders seeking fast execution and stable data feeds combined with aggressive margins and deep discount commissions. Then, as the bearish trend slowed down, volume declined, and Open Interest was flat.

Optimus Futures is a leading online futures broker that caters to traders seeking fast execution and stable data feeds combined with aggressive margins and deep discount commissions. Then, as the bearish trend slowed down, volume declined, and Open Interest was flat. Especially immediately before a new trend or during strong trends, an increase in Open Interest indicates that a futures trading volume and open interest is likely or that the trend will strengthen since more investors are looking to enter a trade. Volume shows the amount of trading activity in a given market on any given day.

Volume shows the amount of trading activity in a given market on any given day. Price volatility increases and just keeps moving sideways. Open Interest and volume analysis can often be a leading indicator when it comes to identifying market turns and reversals.