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Technical Analysis Technical analysis based on options volume can be a very powerful tool in predicting the future direction of the market. For anyone who wants to predict financial market movements and build a successful Options trading system options volume analysis is a VERY important tool. Options technical analysis needn't always focus on price, as price is always a function of volume. Options volume technical analysis does not center around the volume of any particular contract, but around the volume for ALL contracts traded for a particular security. That way we can get an accurate picture of the market and it's future direction. This type of options volume analysis is done in the form of a chart and through the analysis of the chart's behaviour, future directions of the market can be predicted. This trading system is not 100% mechanical as it does have a level of subjectivity. The basic technology behind this trading system is MarketVolume and its system of volume technical analysis. MarketVolume's JavaVolume charting technology allows our analysts to make informed, but still somewhat subjective, decisions as to where the market is going in the mid and long-term, and to make a trade based on the results of that analysis. Also keep mind that this system also incorporated other forms of technical analysis. Every Options trader and Options analyst knows the importance of index charts and index indicators, but that is not the whole picture. What sets our analysts and traders apart from the 'traditional' technical analyst is the fact that they concentrate on the collective volume for all options. A good term for the type of technical analysis behind our Options Trading System is 'Fundamental Options Volume Analysis', whereby we analyze the CAUSE of the price movements in as opposed to just analyzing the result, price.
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