open interest & volume bar charts with average

[abaskaran2]

Does anyone have some where I can look at Open Interest and VOlume on a daily bar chart ( which is in basic studies) AND also draw a moving average line on open Interest and vomune on the chart as it makes it easier to spot big differences please?

Thank you very much.

Angelo

[ACM]

Angelo
The attached efs will plot Volume and a 10 period MA of Volume. The length of the MA can be modified through Edit Studies.
Alex

[ACM]

Angelo
The attached efs will plot Open Interest and a 10 period MA of Open Interest. The length of the MA can be modified through Edit Studies.
Alex

[silverxx12]

Sorry to bother but how is open intrest used in anlysing charts???

[MR]

Volume and Open Interest

Volume and Open Interest are used by some as a guage of potential future activity and direction. It is based on supply and demand. There are limited number of contracts trading and some believe you can tell a lot about a market based on its volume.

Volume measures the number of contracts that trade during a day session. It measures market activity. Open Interest is the total number of outstanding contracts. It gauges market participation. General ideas of volume and open interest:

Price rises and volume and open interest are increasing, the market is strong. Price goes down and volume and open interest are rising, then the market is construed as being potentially weak. Price is down and both volume and open interest rise, market is weak. Price down, vol and open interest going down, the market is possibly growing ready to reverse direction soon.

In a bull market-- for example, what we saw in the 1990's-- you watch for volume to increase on moves up, and decrease on profit-taking. In a bear market-- what we have witnessed in the Nasdaq prior to 2003-- you would have expected the volume to increase on the decline and decrease when it rallied a little bit.

One thing you watch for is when you are trying to pick a top or bottom pay close attention to volume. Is there any evidence of sudden or sharp increases in volume. That catches peoples eyes.

You can learn more about these topics by attending Andy Bushak's seminar where he shares on these topics and how he uses eSignal with AGET features to help him.

Go to the library and see if you can find a book called "Volume and Open Interest" by Kenneth Shaleen. Someone gave me this book a while back and it seems very good on this topic.