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The value I see in futures volume is to confirm turning points. Make a
paintbar that colors bars with, say, over 2 sd volume.
Also ETF volume matters as well, esp. on QQQQ. Often you will see Q's
confirming sell reversals while NQs will confirm buys.
The problem I have had with stock vol is that it is skewed too much to the
open and close to do much good - for what I do with it anyway.
I am attaching a pic - not sure if it is small enough to get thru.
Chris
----- Original Message -----
From: "Alex Matulich" <alex@xxxxxxxxxxxxxx>
To: <omega-list@xxxxxxxxxx>
Sent: Wednesday, November 07, 2007 5:45 PM
Subject: Re: Volume Question
Chris Evans wrote:
I am plagued the idea that volume mostly reflects a proportionate
size range for any given bar - until I can get the impression that
divergences between the 2 have some predictive value then spending
a lot of time on customized contract volume is difficult to justify
For what it's worth, here is what I have learned about volume:
1. Volume doesn't mean diddly squat for futures contracts. A
futures contract is a derivative instrument. Its price can change
even if the contract volume is zero. If the underlying moves, then
the contract will move. It's that simple.
2. Volume CAN mean something for the underlying instrument on which
the futures contract is based.
Given the above, if I were to make a volume indicator for trading a
futures contract, I would use the volume of the underlying; in this
case the actual S&P 500 volume.
My $0.03.
-Alex
Attachment:
solidus0301.png
Description: PNG image
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