Using Open Interest to Find Bull/Bear Signals

Although they do not typically tell us where the economy is headed, they indicate how the economy changes over time and can help identify long-term trends. IOIs are also used by Brokers , market makers , Liquidity Providers , and Dark pools to query liquidity without having to place visible orders in the aggregated order book Level-2 MarketDepth. When sales decline, it generally indicates that values will also drop. Economic indicators and their impact on currencies 6 minutes. In other terms, this means that all of the long position holders that bought near the top of the market are now in a loss position, and their panic to sell keeps the price action under pressure. Lagging Indicators Unlike leading indicators, lagging indicators shift after the economy changes. But if she becomes friendly and talkative, you can take it as a sign this woman is interested in you.

An indication of interest (IOI), sometimes expression of interest (EOI), is an expression in finance that demonstrates a buyer's non-binding interest in buying a security in the stock market, often before it is available for purchase.

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Before listing some common IOIs, a few guidelines. First, be aware that IOIs that are not a response to your displays of higher value are often false. Women — consciously or not — use false IOIs to get men to pay attention to them.

IOIs that you can trust occur spontaneously after your display of higher value. When Mystery began teaching game, he suggested that you should count three IOIs before moving into qualification.

To that end, you should train yourself to recognize attraction. Ask yourself the following questions: But while you develop your intuition, let the following list be a guideline. All of the list below are well known IOIs:. The index is a closely watched barometer of economic activity. Department of Commerce uses ISM data in its evaluation of the economy. For most of the 21st century, housing and real estate have been leading economic indicators.

Other economic indicators include interest rates, the money supply , and consumer sentiment. The result is used to predict future prices. The MACD is based on the assumption that the tendency of the price of a traded asset is to revert to a trend line. In order to discover the trend line, traders look at the moving averages of asset prices over different time periods, often over 50 days, days and days.

In addition, moving averages can be either simple or exponential. The RSI compares the size of recent gains to recent losses to determine the asset's price momentum , either up or down. Using tools like the MACD and the RSI, technical traders will analyze assets' price charts looking for patterns that will indicate when to buy or sell the asset under consideration.

As a result, they may feel the need to step in and raise interest rates, in an effort to slow or temper the overall growth. On the other hand, a negative growth or a downward trend may cause the Federal Reserve to lower the interest rates, in order to stimulate the economy and spur growth. The Consumer Price Index, or CPI, is simply a measure of the average amount of change over time in prices paid by consumers for a fixed market basket of typical consumer goods and services. This tool is considered to be a key indicator of inflation, which can play a large role in setting and determining the interest rates.

A Consumer Price Index that is higher than expected is typically considered inflationary. Similar to the Gross Domestic Product, the inflationary status can lead the Fed to raise interest rates in an attempt to temper growth. Conversely, a lower than expected CPI can cause both yields and interest rates to drop. The federal government regularly issues an employment report, which provides information on the unemployment rate and the number of unemployed people by industry, occupation, reason for unemployment, and also length of unemployment.

Unlike other employment indicators, such as payroll employment, the unemployment rate is what is known as a lagging indicator, meaning that it does not necessarily change direction at the same time as the economy.

If the unemployment rate is lower than expected, or if there is a downward trend, this can be considered inflationary — meaning that interest rates may be raised as a means to temper the growth.

There are plenty of other economic indicators and signs that you can keep an eye on, in order to better predict if and when the interest rates may make a shift, whether they are to be raised or lowered.

You can also watch the payroll employment, which is even used to predict other economic indicators. Payroll employment is considered by some to be the most significant indicator of current economic trends every month, coupled with the unemployment rate. Housing stats are another economic indicator that you can observe. As with the other economic indicators, a higher than expected increase in housing starts can be seen as inflationary, which can lead the Fed to raise interest rates.

Both are considered to be good indicators of consumer spending. Keep in mind, however, that consumer credit data only has a small overall impact on interest rates.

Interest rates

These are known as "indicators of interest," typically abbreviated as IOI s. In this article, we’re going to talk about some common IOIs, and how you can easily identify them. In . Other economic indicators include interest rates, the money supply, and consumer sentiment. Technical Indicators In the context of technical analysis, an indicator is a mathematical calculation based on a security's price and/or volume. Elsewhere: UK monthly GDP and unemployment; Japan final GDP growth; China inflation, industrial production, retail trade and fixed asset investment; and interest rate decisions from the ECB, the BoE and the Central Bank of Turkey.