Is open interest or volume more important consideration in futures trading?

Discussion in 'Index Futures' started by helpme_please, Jul 20, 2017.

  1. I don't intend to use futures for day trading. I intend to use them for longer-term trading as a speculator. Embarrassed to say, I have yet to place even a single trade on futures. I have been investing in stocks in the past. Now, I am still studying futures.
     
    #11     Jul 21, 2017
  2. Overnight

    Overnight

    Do not feel embarrassed about not placing a single trade on futures. Never. You are coming from one side of the market to another, where rules and strategies are different. It is good of you to study your new "battlefield", rather than jump in blindly where angels fear to tread.

    As you said, you have been investing in stocks. Coming over to the "trading futures" side is a whole other animal. Kudos to your prudence in trying to understand the beast before trying to slay it.
     
    #12     Jul 21, 2017
    helpme_please likes this.
  3. AlexCorp

    AlexCorp

    Here are the interpretation of open interest and volume
      • Price Volume Trader’s View
      • Increase Increase Bull Trend
      • Decrease Decrease Bear trend could probably end
      • Decrease Increase Bear Trend
      • Increase Decrease Bullish trend could probably end
     
    #13     Jul 23, 2017
  4. tommcginnis

    tommcginnis

    I watch a slice of puts and a slice of calls over several expiries.
    If there is an emphasis of one expiry (either OI ownership, or instant volume) I want to know.
    Likewise, if puts or calls are out of proportion relative to other expiries, I want to know that, too.
    Do yourself a favor, and make four tables (calls and puts, OI and volume) and take a look.
    If you see a pattern, discontinuities, up-trend or down-trend, or calm-water similarities, and can't tell an explanatory story, take note.
     
    #14     Jul 31, 2017