Under the action of futures trading positions, volume change and disk space are two important factors that determine the operation law of the supervision market. Here, let's first define the concepts of volume and disk space. The accumulated disk space of all open positions in futures or options contracts is a sign of the activity and liquidity of the futures market. When the price reaches or approaches a specific price, it will have an impact on investors' trading ability. The amount of disk space in the futures market can be used as an early warning tool. Simply put, you can calculate the amount of disk space: if a new buyer and seller increase the new empty disk transaction volume by one unit. If you have a long position, the trader moves to another new trader and hopes to have a long position, the amount of disk space will remain the same; If traders hold long positions and try to get rid of the original traders to hedge short positions, the amount of disk space will be reduced by one unit.
Futures or options contracts at a specific time.
The accumulation of volume transfer is often used to record the trading days of trading conditions. In most cases, investors will not buy and sell open contracts in the market with extremely low trading volume. In other words, low capacity and disk space indicate that this is an illiquid market. Because in such a market, the better point and timeliness will be greatly reduced. Similarly, too many active markets may keep traders from feeling the pulse.
Most experienced traders believe that quantity and disk space can help determine the technical indicators of other technical charts. In other words, traders don't just make trading decisions based on the volume or the amount of disk space, they can combine other technologies to confirm the signal.
For example, if the futures market breaks the price and is accompanied by huge transactions, it is a stronger signal that there is an upward trend. In other words, if the price rises to a new high, but it is accompanied by a downturn in trading, then the trend is doubtful. If the price transaction hits a new high or a new low, it is a signal that the price has approached or reached the top or bottom. If the turnover increases, the price will start from the current trend, then this trend may be coming to an end. This is called divergence.
Generally speaking, the trading volume will follow the development trend. In the upward trend, the trend of quantity and energy will be accompanied by the rise of the market price on that day, and will fall in the market on that day. On the opposite side of the downward trend. The change of disk space is also used to help investors confirm other technical signals, which can help investors determine how much new funds have entered the market or are withdrawing from the market. These two important figures help investors to judge the market trend. Trading rules
Another common practice is that this trend will continue in the current direction if the trading volume and positions increase; If the turnover and positions decrease, the current trend is a possible signal to the end.
In terms of disk space and different turnover in some places: in many markets, the seasonal characteristics of empty disks are high and low in a year. The seasonal pattern of disk space is very important for investors to analyze the market. If the price is rising and the total disk space is higher than the general seasonality (5-year average), it means that new funds have flowed into the market, buying is strong and a bull market has emerged.
However, if the price rises and the amount of disk space drops to a seasonally lower than average level, it is probably because of the position with high short stop loss, the funds are flowing out of the market, and the rebound is a bit weak. The same is true in the case of a downward trend.
In addition, there are two additional laws of disk space that investors should pay attention to: First, when the disk space is large, the market is in a very high position, which is likely to lead to a rapid decline in prices. Second, when there is disk space, the price will rise in a period of consolidation. Once the breakthrough appears in the market, the market trend of the breakthrough is relatively strong. In fact, many experienced traders like to analyze the classified report of the Commodity Futures Trading Commission of the United States, and analyze the business volume and actions of big speculators from the observation of changes in disk space to guide their own operations.