Using Futures Volume to Identify Breakouts and Reversals in Spot FX
In equities and futures, analysis of volume plays a significant role in assessing trend and reversal potential. In spot FX however, the lack of a centralized exchange makes volume analysis difficult at best and unreliable at worst. Luckily, spot traders can use futures volume as a proxy for OTC volume in order to identify trend behavior changes, high risk reversal potential, and even support/resistance.
Jamie Saettele, CMT
Scandinavian Capital Markets
Jamie Saettele is Senior Technical Strategist at Scandinavian Capital Markets, a premier broker offering services to institutional clients, fund managers and professional traders around the world. He is co-founder of SB Trade Desk, a research service focusing on the foreign exchange market. Jamie also works with the inflation hedge fund at ABFM, focusing on market research, portfolio strategy and trade execution.
Jamie began his career in October 2004 at Forex Capital Markets in FX (foreign exchange) sales in New York City. Within several years, he was the Senior Technical Strategist for DailyFX (previously a subsidiary of Forex Capital Markets and now a subsidiary of IG Group out of London). He has contributed to Technical Analysis of Stocks and Commodities magazine, SFO magazine, Futures magazine, Investopedia.com and is the author of Sentiment in the Forex Market (Wiley Finance). He has held his Chartered Market Technician designation from the Market Technician’s Association since 2008. Jamie graduated from Bucknell University in 2004 with a B.S.B.A in Accounting and was a 4 year starter on the water polo team