Volume is a key component in technical analysis and in momentum based trading strategies. Heavy volume usually leads to sustained price trends and higher quality intraday momentum. In contrast, lack of volume usually leads to a lot of broken keyboards, computer screens and accounts. So it can be very beneficial for a trader of any instrument to have a sense … Read More
S&P/FX Trade Example
I talk a lot about the intermarket relationship between the S&P 500 Index futures, and the EUR/USD forex pair. The relationship is typically, S&P goes higher, EUR goes higher. There are fundamental reasons for this that I am not going to go into here. What I want to do here is highlight a particular condition that appeared in the S&P … Read More