Volume Indicator
Description:
Plots daily volume, normally shown as a histogram.
Conventional Analysis:
Used to confirm strength of a move or breakout.
Additional Analysis:
A market move accompanied by increasing volume is
generally more likely to continue in the same direction,
whereas a move accompanied by decreasing volume is less
likely to continue. Decreasing volume indicates decreasing
participation
among investors, and a general lack of conviction which
often precedes a change in trend. In addition, a
significant decline in volume for an extended period is
characteristic of a bear market.
Open Interest Indicator
Description:
For Futures Markets only. Plots the number of open
contracts of a given future.
Conventional Analysis:
An increase in Open Interest with an increase in price,
confirms an upward trend. A decrease in Open Interest
while prices are making new highs is often seen as a
warning to a decline.
Technical Analysis Studies Available
