RULES FOR THE PUBLIC INDEX Learn to do the exact opposite of public traders as a group. When they are sellers, look to buy long. When they have been buyers, look to sell short.
It seems that the volume/price relationships that matter and that are the most correct as a rule of thumb are:
• Price up, volume down is bearish.
• Price down, volume up is bullish.
• Open interest up, price up is bullish.
• Open interest up, price down is bearish.
• Open interest down, price up is bearish.
• Open interest down, price down is bullish.
