Volume Index

Overview

The "Volume Index" is a trading indicator that compares the volume of futures contracts to the volume in the spot market. It offers traders insights into the relative trading activity and liquidity between futures and spot markets, reflecting investor sentiment and market dynamics.

Interpretation

Examples

1. Increased Futures Volume: If the Volume Index shows a significant increase in futures volume compared to the spot market, this might indicate a growing interest in future price movements, suggesting bullish sentiment. Traders could consider taking long positions in futures, anticipating upward price momentum.

2. Higher Spot Volume: Conversely, if the spot market volume is notably higher than the futures volume, it could imply that traders are more focused on immediate market conditions, possibly indicating bearish sentiment or a lack of confidence in future price stability. In this case, traders might look to execute short positions in futures or pivot towards spot market trades to capitalize on more immediate price movements.

Indicator Triggers

Available Basic Triggers:

• Cross level
• Sustain level
• In zone
• Delta or Lines Cross