Price versus Volume. A hidden signal?
Updated
A quick view on the SPX500 future shows something interesting. It is not rock-solid analysis, but just something fishy that caught my eye and I want to share. Discussions are welcome.
In the last week, we can see two interesting phenomena:
- Big downwards price moves happen with big volume, mostly day time activity(blue)
- Big upwards price moves happen with small volume, mostly night time activity(orange)
Of course there are examples in this graph where things make sense (green) or where we see downwards momentum with little volume and upwards momentum with higher volume. But still… I find it interesting.
It seems market is very willing to push this down, but overnight news/players pushing it, cause it to keep strength.
And look at that candle to 2980! No volume at all! It’s fake. Fake news eheh.
For me this is another signal how this is a bubble that is about to burst.
Do I dare to trade on this now, in size? No. Not without more confirmation.
Do I think this should go down? Hell yes.
In the last week, we can see two interesting phenomena:
- Big downwards price moves happen with big volume, mostly day time activity(blue)
- Big upwards price moves happen with small volume, mostly night time activity(orange)
Of course there are examples in this graph where things make sense (green) or where we see downwards momentum with little volume and upwards momentum with higher volume. But still… I find it interesting.
It seems market is very willing to push this down, but overnight news/players pushing it, cause it to keep strength.
And look at that candle to 2980! No volume at all! It’s fake. Fake news eheh.
For me this is another signal how this is a bubble that is about to burst.
Do I dare to trade on this now, in size? No. Not without more confirmation.
Do I think this should go down? Hell yes.
Note
I can add to the analysis that the 'push' to 2980 on the early hours of 20th of May are also very limited in volume. So far, the trend just continues. Let's see with what kind of volume a selloff will go.Note that I have not compared these volumes with real SPX volumes or other brokers/exchanges. It could be a false signal. Conclusions from others are welcome.
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