the method of analysis of currency futures contracts based on volume data
TRANSCRIPT
The method of analysis of currency futures contracts based on volume data
Evgeniy Bayrakovskiy
Definition of ‘Volume’
The Currency Futures Contracts Analysis Method is based on the volumes data. Why is volume so significant? Because it shows market moves. It forms them. Every price move is followed by somebody buying or selling at the same price. But in order to understand how the biggest market participants act, and what price trend move and market change to expect, it is necessary to take into account many factors. Volume is the number of futures contracts traded during a given period of time at a set price. Volume is the source, the engine of the market. It is used to measure the worth of a market move. And only due to volume, the reflection of the deals of big investors, the market makers, can we see the true depth of the market and the laws it works by. Because big investors obviously know where the market moves. An ability to understand correctly the accumulated volumes, see big positions and interpret practically is crucial for successful trading. As a trader follows the move of large banks or funds, not goes against it. Which makes the basis of exchange trade with minimal risks.
The Volume Significance in Financial Markets Analysis
One of the most efficient ways of speculative trading is the trading of currency futures contracts at one of the biggest by capitalization and most famous commodity exchanges in the USA – СМЕ Group via its electronic trading system Globex. On the basis of received data on the volumes after preliminary or online deals, we have an opportunity to follow the forthcoming changes in trends. The advantage of trading using volume analysis first of all lies in obtaining information on price levels of different classes, accurate determination of the turning points in trends of 10-15 basic points worth currency futures contract at the moment, followed by reduced activity and the lack of demand of buyers or sellers.
The Time Sequence of the Volume Accumulation and Its Classification
Thus, the ratio “profit / loss” is 3/1 – 5/1, which allows to make a considerable profit in exchange transactions. The main point of the method is in finding price levels at which total or maximal number of deals are done during different periods and time intervals. During the whole time of a new futures contract until its expiration, in one month, week, day, session or hour.
Volume level formation pattern in timeand its practical use in buy and sell
DETERMINATION OF THE MARCH EURO CURRENCY FUTURES CONTRACT TOTAL VOLUME AS OF 20/02/2013
DETERMINATION OF MARCH EURO CURRENCY FUTURES CONTRACT MAXIMAL VOLUME DURING THE AMERICAN SESSION AS
OF 19/02/2013
MARCH EURO CURRENCY FUTURES CONTRACT. SHORT TRADE AS OF 20/02/2013 OF THE CONTRACT VOLUME. ENTRANCE AT A PRICE OF 1.3352, WITH CONFIRMATION AND DEVELOPMENT OF THE TREND.
Alternative SHORT trade at a price of 1.3390 of the American session volume as of 19/02/2013.
THE MARCH EURO CURRENCY FUTURES CONTRACT. CONFIRMATION OF THE LACK OF INTEREST FROM BUYERS IN CLUSTER PROFILE AT THE ALREADY FORMED CONTRACT LEVEL
DETERMINATION OF THE MARCH BRITISH POUND CURRENCY FUTURES CONTRACT TOTAL VOLUME DURING THE PERIOD OF 27/01/2013-01/02/2013
DETERMINATION OF THE MARCH BRITISH POUND CURRENCY FUTURES CONTRACT MAXIMAL VOLUME DURING THE ASIAN SESSION AS OF 07/02/2013
THE MARCH BRITISH POUND CURRENCY FUTURES CONTRACT. BUY DEAL AS OF 08/02/2013 OF A WEEKLY VOLUME AT A PRICE OF 1.5730, WITH CONFIRMATION AND DEVELOPMENT OF THE TREND.
Alternative BUY deal at a price of 1.5717 of the Asian session volume as of 07/02/2013.
THE MARCH BRITISH POUND CURRENCY FUTURES CONTRACT. CONFIRMATION OF THE LACK OF INTEREST FROM BUYERS IN CLUSTER PROFILE OF THE ALREADY FORMED WEEKLY LEVEL DURING THE PERIOD OF 27/01/2013-01/02/2013
