[brownsfan019]

I updated the original post but wanted to give an example here showing how the volume can split when rollover is near.

When rollover is near on the grains and the volume is split, you should anticipate smaller moves b/c there is literally some people trading the old and some the new and there isn't as much power behind the pushes.

Today's example:



That is taken from my quote window on OEC trader and the last column is total volume for the day. As you can see, the volume is basically 50/50 at this point. As a direct result, we are seeing this type of price movement:




So plan accordingly when you see volume split. Do not expect huge, quick movements as you see when there is just 1 contract being traded.

[Dinerotrader]

That explains a lot. I was watching the ZS yesterday and today wondering why the large moves weren't happening. I really appreciate the post about this.

[brownsfan019]

Originally Posted by Dinerotrader »

That explains a lot. I was watching the ZS yesterday and today wondering why the large moves weren't happening. I really appreciate the post about this.

Just glad I thought of it now. But it was apparent today b/c I was sitting there going - come on, what the hell is going on here? I just told these guys on TL that this thing moves and then it's at a standstill. Well, rollover is the one time you may see the movements not be as much. There was still money to be made on the ZS the last 2 days, but the moves are smaller and slower.

[Dinerotrader]

Originally Posted by brownsfan019 »

Just glad I thought of it now. But it was apparent today b/c I was sitting there going - come on, what the hell is going on here? I just told these guys on TL that this thing moves and then it's at a standstill. Well, rollover is the one time you may see the movements not be as much. There was still money to be made on the ZS the last 2 days, but the moves are smaller and slower.

There is always money to be made.... its a question of whether I can make it. If you would, leave some for me to make tomorrow instead of selfishly taking it all.

I am so used to stocks and still relatively unfamiliar with the rollover process. How long should it affect the volume? When do you normally switch to the new contract?

[brownsfan019]

Originally Posted by Dinerotrader »

There is always money to be made.... its a question of whether I can make it. If you would, leave some for me to make tomorrow instead of selfishly taking it all.

I am so used to stocks and still relatively unfamiliar with the rollover process. How long should it affect the volume? When do you normally switch to the new contract?

The rollover happens fairly quickly - a few days. And all futures contracts have rollover, but they vary based on what market is being traded.

I move to the new contract as soon as the volume there is the same or greater than the old one. I do that simply to make it easy and should I somehow forget to close a trade or something, I'm in a contract that can be closed easily b/c as soon as the volume dies on the old one, it dies big time.

[brownsfan019]

Still split today and it's putting me to sleep...

[Dinerotrader]

Quick shot of the daily ZS. The last 3 days have been a quick move up to the top of the range. Reversal?

[Dinerotrader]

Quick shot of the daily ZS. The last 3 days have been a quick move up to the top of the range. Reversal? Big breakout? Just something to think about as price moves along today.