When futures prices are moving, the amount of pressure being applied to the move is certainly worthwhile information for the trader to know. In futures trading, that pressure is volume, the number of contracts traded during a specific period, and is directly related to the psychology of the marketplace.

The key question is this: How many contracts are traders willing to push in the direction of the price? In other words, how much confidence – or how much fear – do they have in what prices are doing? If they have strong convictions, a logical move would be for them to back up their belief by trading more heavily.

Posted on November 13th, 2008 at 11:22 AM

The Canadian Dollar continues! We keep breaking through resistance (see the MOB on the chart) and have set up again for another Continuation trade. This time, it's an XTL continuation trade that has pulled back on top of the last MOB we just violated. This should be another good setup, as the overall trend from the Daily is still up.

Reviewed by Ed Dobson, President, Traders Press, Inc.

Did you ever guess which way the market was going to move and then lose money? That’s like saying “Have you ever traded?” Of course you have! It happens all the time.

Guess right; you win. Guess wrong; you lose. If you’re lucky (or consistently good), you’re right more often than wrong, and your average profit is greater than your average loss…and you make money on balance. That would place you in the distinct minority of traders.