Dow Mini, rising price falling volume

Discussion in 'Index Futures' started by myminitrading, Aug 21, 2006.

  1. This rally off 10800 has been on declining volume, but if you look at the cash index the squirt last week was on consecutive days of rising volume. That was mainly due to the options expiration on equities is my guess.

    Its conflicting data thats for sure, just like this entire market for the last three years, gold and the US dollar both rising and falling together.
  2. Pabst


    I'm not a fan of volume analysis. Clearly though falling volume in a rising market indicates shorts are trapped and chasing a limited supply of offered product. That of course can change in a heartbeat. My suggestion is to combine your volume analysis with a look at open interest. Has open interest been falling also?
  3. i dont look at volumes no more and it has done good to my tradin': sometimes i would have not taken a pos based on lack of volumes, now i dont give a shit and i go for it; many of those trades paid off big time...i just want to know how active is the instrument i'm lookin' to trade and nothin' more.

  4. The overall volume is somewhat important.....but the key question was, "what was the DELTA of the Dow mini during the period you state"?

    Lite volume can have just as much price movement as heavy volume.....the imbalance of the volume is the measurement necessary to observe during these periods.....the hints were there for all of last week.