Download Open interest

Chapter 3
Chart Construction
Type of charts
1.
2.
3.
4.
Bar chart: shows open, high, low, close prices
Line chart: uses the closing price
Point and figure chart
Candlesticks: the relationship between the open and the close
Bar chart
Line chart
Candlestick chart
Construction of the daily bar chart
• Volume represents the total amount of trading activity in
that market for that day.
• Figure 3.7
• Arithmetic vs. logarithmic scale (Figure 3.6)
Arithmetic vs. logarithmic scale
Future and open interest
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Future 期貨
Open interest is the total number of outstanding futures
contracts that are held by market participants at the end of the
day.
The limited life feature of a commodity futures contracts
To provide the necessary continuity in volume成交數and open
interest numbers待交易數, and to give them forecasting value, the
total numbers are generally used.
Volume and open interest are reported a day late.
Volume and open interest
Future and open interest
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The individual open interest numbers in futures tell us which
contracts are the most liquid for trading purposes. (As the term
implies, higher open interest means that there is more interest
in certain delivery months.)
As a general rule, trading activity should be limited to those
delivery months with highest open interest. Months with low
open interest numbers should be avoided.
Weekly and monthly bar charts
1) Weekly/monthly chart: one bar represents the price activity for
the entire week/month.
2) * Daily chart covers 6~9 months. (1 month~2 years in Yahoo
Finance)
3) * Weekly Chart can go back as much as 5 years. (same in
yahoo finance)
4) * Monthly chart, up 20 years. (10 years and Max in yahoo
finance)