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Interestingly enough NT8 analysis showed greater absolute value for both VOL and CumDElta for MNQ. VOLMA confirmed that. If we think about it that would make logical sense cause MNQ is much more affordable and thus much more traders participating in it.
NQvsMNQ_VOLwCumDLT
Can you help answer these questions from other members on NexusFi?
So probably in this case we are talking about capitalization, which would indeed make NQ much more heavy. For me personally it would not carry too much difference as my best performing algos are using VWAP and DMindex. Volume based usually come third. I am using it mainly for the confirmation of exhaustion along with other indicators. There also some issues with NT8 buy sell volume colouring as some bars with negative cumdelta are coloured as being positive and vice versa. This would have enormous implications for analysis.
Overlapping those two charts would be a bit more convincing. But my imperfect vision did not see any difference whatsoever. Though as we already discussed the point was about capitalization.
The moment came with HUGE bearish volume bar stuck at 14760 that did not manage to move price. That signified wasted bearish effort making decision of going LONG quite logical. This decision was augmented by previously stated argument about overall bullish sentiment due to amount of trapped bears and end of month bullish environment.
Sometimes things work.
1. Smart folks from SimplerTrading pointed that this is End of Month and End of Quarter.
According to one school of thought backed by historical data it tend to favour very strong bullish sentiment.
2. Though, historically last trading day of the month, which is TODAY, is really not for faint-hearted. Make your pick.
3. There is also talk about developing short squeeze , which as we know favours BULLS. Big time.
And we all know what a big fun it is. For BULLS.
4. Another observation that current daily candle is in the formation reversing from 3rd lower SD of 21 Keltner Channel which also point to quite strong BULLISH sentiment.
The only strong case for BEARS could be made from the fact that historically Fridays (End of Week) and last trading day of the month are more on a bearish side.
So it is FRIDAYS(EOW/EOM) vs EOM/EOQ coming out from strong downward channel, and bouncing from 3rd lower SD of Keltner with a lot of trapped bears.
Did I mention that there is tiny matter of unresolved issue with the funding of US government. This is ultimate BEAR of them all with the latest news from CNN that the Congress
is still on track for government shutdown. Tighten your belts ladies and gentlemen as we could be for a bit of a rough ride.
But there is still couple of days to play this cliff-hanger.
Summarizing, it is TECHNICALS vs NEWS.
So I would still play LONG targeting 2nd and 1st SD of Keltner . Alternative would be S1 or PP on either weekly or monthly Fibonacci or one of VWAPs.
