🌟 Capital Market Chronicles – Episode 283: TECHNICAL ANALYSIS – MARKET INTERNALS (Part III)
“Participation matters. But conviction matters more.” 📊🔥
📈 1. Cumulative Volume Index (CVI)
Tracks whether volume is accumulating or distributing over time.
If rising prices are supported by increasing volume → strength.
If prices rise but volume weakens → caution.
Volume confirms commitment.
Without volume, rallies lack stamina.
📉 2. TRIN (Arms Index)
Measures advancing vs declining stocks adjusted for volume.
It combines breadth and volume.
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TRIN < 1 → bullish pressure
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TRIN > 1 → bearish pressure
TRIN highlights whether buyers or sellers have force behind them.
It’s not about activity.It’s about dominance.
📊 3. Open Interest
Tracks total outstanding contracts in futures and options.
Rising price + rising open interest → new money entering trend.
Rising price + falling open interest → short covering.
The difference?
One builds trends.
The other exhausts them.
Open Interest tells you whether commitment is increasing or simply unwinding.
Volume and participation intensity reveal seriousness.
Markets whisper through price.
They shout through volume.
Next: Sentiment, leverage, and the psychology of excess.
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