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Indicators Volume and Open Interest

Indicators Volume and Open Interest

Volume and open interest is the second indicator such as 2 of the currency pair. Maybe some of you have been through a lot of the second indicator. If we see this second indicator can reflect the market position that we are facing.
Generally, the futures trader prefer this concept in terms of its position.

Volume reflects the size of the trading ativitas or lot number of the switch hands between the markets. The more the market that perform the activity the greater the number of the lot akan diperjual sale. On the other hand that we need to see is a market trend. The greater the volume of a trend in the usually trend will continue. As an example of the current market trends tend to go down, if this is supported by a number of the larger volume, it is not closed will likely trend continues. However, if a trend is not supported by volume, in this case the volume is not closed down the possibility of a trend akan akan expired or face stagnation.
Open Interest represents the number of positions open. What is the open position, open position is a position that we have not been completed in a trade, eg the time you open a position you do not get close in this case is a sell position. What is open interest that affect this market? This reflects the nature of the market, as an illustration of the greater market held positions that are open to buy the larger trend increases. So vice versa. So if trends are rising, we can approximate the trader holds a position that opens the big buy.

Generally, the perpetrators of these two indicators the market is at the same reflection in the market. Generally, if the market trend is supported by the volume and open interest will be the big trend continues. However, if there are discrepancies between the volume and open interest eg large volume and open interest so small trend will enter the correction or change the period to enter the trend.


Therefore the discussion about the second indicator. Generally, this indicator is often used in the position. Because the two indicators have your trading in every platform.

1 Comment:

jean said...

HI, I' m looking for a website where i can follow an open interest indicator in different markets. Do you know one by any chance?
Thank you very much

cheers

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