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I used to fade moves when o.i. didn't confirm the price action, on the
assumption that the spike in price was short covering....it worked OK for a
while, but I don't trade that anymore because I had several losses as a result
of o.i. turning up quickly right after I entered short , thereby supporting
the move...the only reason I could think of was that with all of these
breakout systems, people just blindly jump on the wagon. I think that if I was
smart enough to learn all the systems people trade, I might be able to take my
wallet out of the kitchen drawer someday.
Patrick wrote:
> Futures contract volume is almost worthless because it comes on a one day
> delay. How are you supposed to do current market analysis when you have
> today's prices and yesterday’s volume?? How would you set up a EquiVolume
> chart for today’s futures prices?
>
> A BETTER ANSWER:
>
> A better answer is to have the data vendors add total Up Ticks and total
> Down Ticks to the EOD data file. This could be delivered the same day and
> the Total-Ticks-per-day is a better indicator of market activity than
> volume.
>
> Patrick.
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