So you are referring to Volatility as an indicator of Open Interest? Interesting thought, but how do you measure volatility? Based on the time intervals? By ticks? In what time periods? What is the correlation of Volatility and OI? What are the points of accumulation related to OI? In other words do you have the system in place to actually implement it?
No... I'm not referring to volatility as and indicator of Open Interest. I'm saying that open interest will tell you things about the price action and volatility will give you the same information about that same price action. As to your other questions...I decline to answer other than to say I've been using it for over 10 years. However, if you don't understand how to use volatility as a price action only trader (no indicators)...the odds aren't good your going to be able to use open interest if it walked up and gave you the keys to the car. Mark
Hello Mark, I think we should continue this conversation private... One of our market models is using the volatility in the statistical analysis... I'm just wandering if we are on the "same page" in these developments. Most likely you did advance further in your research and development, because we didn't find direct correlation between OI and volatility... If you are interested to continue this discussion, please contact me private Best regards. ATS