Volume and Open Interest: Classic Trading Strategies for 24-hour Markets

Volume and Open Interest provides traders with strategies for identifying and profiting from discrepancies in market behavior. Includes practical exercises, a glossary, reference appendices, and a listing of exchange phone numbers and Web sites This book will relate the three variables of price change, volume level, and open interest fluctuation. The result will produce the direction of the major price trend and a reading of that trend’s strength. In many examples, a elassical bar charting price pattern will exist. The basic rarnifications of these formations will be highlighted, but this book is not intended to be a comprehensive study of price pattern recognition.

A technical approach to the analysis of any organized market uses volume as an important input. The futures exchanges produce an additional vital statistic– open interest. The technical form that best lends itself to analysis of volume and open interest is the daily high-low-elose bar chart of a futures contract. Consequently, bar charts will be used to illustrate the concepts . Daily bar charting is heavily relied upon in “position” trading as opposed to shorter term techniques (point & figure, five-minute bar charts, etc.) utilized by traders. Volume and open interest changes should be important to all categories of market participants: short-term traders, foreign-exchange dealers, hedgers, and position traders.

Contents:

• Rationale
• Volume
• Open Interest
• General Rule for a Healthy Price Trend
• Why Total Volume and Open Interest Are Used
• Developing a Disciplined Approach
• Specialized Problems
• Idiosyncrasies to the General Rule
• Specific Market Behavior
• Commitments ofTraders Report
• Support and Resistance
• Asian and European Foreign Exchange Dealers’ Use of Futures Volume and Open Interest to Obtain a Market View
• Case Studies
• Twenty-Four-Hour Trading
• The Data
• Practical Exercises

Volume and Open Interest: Classic Trading Strategies for 24-hour Markets By Kenneth H. Shaleen pdf