|
PureBytes Links
Trading Reference Links
|
Earl -- Thanks for your comments on Open Interest and thanks for resending
the post. I raised the issue about OI when Bill posted that beautiful bear
flag on the bond intraday chart, although I realized that OI runs a day
behind and is not in the intraday data feed. As a position stock trader I
find flags and pennants good continuation patterns, esp. when accompanied by
declining volume. I'm curious if vol/OI changes during the formation of
these patterns hold predictive value. From your comments about OI being
generated by sellers, rising OI during the formation of a bear flag should
confirm a downward move.
Several years ago I plotted OI and volume on the OEX options. While
there seemed to be some correlation in the variations of OI to volume for
overall market direction, it didn't occur to me to try to correlate these
changes to classic chart patterns.
Thanks again. -- Charles Marchand
At 09:08 PM 5/24/00 -0600, Earl Adamy wrote:
>Posted this early Friday morning before I left town and it looks like this
was never broadcast by the list server.
>
>Earl
>
>----- Original Message -----
>From: Earl Adamy
>To: realtraders@xxxxxxxxxxxxxxx
>Sent: Friday, May 19, 2000 6:14 AM
>Subject: Re: [RT] Bear Flag Breakout (2)
>
>
>
>
>Regarding OI, I find it of only occasional use - futures OI is created by
short sellers selling a future to a willing buyer. On the surface OI would
seem to offer some information e.g. price going up as OI expands indicates
the sellers are bearish. In practice however, it is who the sellers are
which is more meaningful when it comes to futures and one looks to the
Commitment Of Traders reports for this info. Even this info has limitations
- I use it to enhance/confirm trading decisions rather than as trading signals.
>
>OOH, a simple OBV study run on futures tick volume can provide rather
useful information for intraday trading, bonds included.
>
>Earl
> ----- Original Message -----
|