Today's article focuses on how to interpret the volume futures after the news. The trend is formed when large volume goes the market. Most often, strong accumulation of large volumes place after release of important news, as well as news releases, when current value is very different from the previous value. I do not consider the specific values published news and speech at the meetings.
MM (market maker) — is a major dealer or the player who support liquidity and regulates the prices of a trading floor in agreement with the exchange. After the release of the news MM often have to provide liquidity to the market, so I will consider that these volume accumulations are the true. Because the number of bulls and bears is the highest on the highs and lows of the market, so MM forced to participate, providing liquidity all market participants. It proves that MM present at the extremums of the market. Therefore, the price goes in the opposite direction, when liquidity is fully provided to all participants, that is, the market is saturated and there are not willing market participants, which want to buy or sell at the disadvantageous prices. But there are situations when the price goes above / below the extremum, again showing large amounts. In this case, we can expect when the price will return to the previous level of accumulation of large volumes.

( Читать дальше )