Operating signals Intermarket analysis with volumes
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This image shows the possibility of carrying out a medium-term future on the Bund in order to highlight operating signals, using the methodology of volumes and the indicators that I mentioned several times, but letters and articles in order to be also supported by a logic intermarket.
The picture in the black segment represents the BUND future prices, which was applied to the Pentagram since June 29, 2010. The blue line represents the CVD of the Bund, then the flow volume in the input output BUND over impression with the prices in order to evaluate this information in relation to price themselves. The green line represents the CVD of ten American, 10-Yr Bond USA, ZN code that is the alter ego of the European BUND and then shows the flow volume related sull'obbligazionario USA all'obbligazionario EURO. The orange line is the CVD dell'EuroStoxx50 however, that the stock index negatively correlated with respect all'obbligazionario and then shows the flow of input and output volume.
It 'clear that the large movements of position, are characterized by inputs and losses of volume sull'obbligazionario dall'azionario volumes and vice versa. This is to show precisely that the logical analysis of the volumes I have mentioned several times, taking advantage of modern technology, modern platforms such as Multicharts statistical algorithms and advanced design than the classical logic of the Market Profile / Volume Profile, can provide useful information for operating a medium-term intermarket also supported by clear signals. Knowing sull'obbligazionario
entering volumes and simultaneously on the same graph to read the release dall'azionario volume not only provides me with a confirmation of the fact that a movement taking place on the Bund is worthy as supported by volumes that accompany the movement itself, but is further reflected in the repose of directionality of the Bund, by the fact that in the same volume out dall'azionario which has a negative correlation with respect all'obbligazionario. With the same
logic, you can use these indicators to a parallel analysis on more equity instruments at the same time, as Eurosroxx50 DAX future and instead are positively correlated with each other. The graph below
analysis of the week just ended up EuroStoxx50 (gray) with CVD and CVD Stoxx in DAX blue pentagram in red on a weekly basis.
The logic here is to double-check, or having two indices correlated positively, when we have that both indexes show the same movements of volumetric flow and / or differences, then it means that the movement is a movement underway choral relative to equities and therefore probably deserves more attention. Conversely
when the index shows a force that is not paid on the other index, we can use to filter the signal or the possible entry or to operate using the spread between the two indexes, ie working on an upward and downward on the order of advantage of the greater thrust of the index volume and stronger connotations more bullish in the face of possible weakness of the other, while being exposed in both directions on equities.
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