Spread

By measuring the spreading activity, we can assess the directional speculative activity in the market.

In case of high spreading activity, it is highly likely that we have a volatile market (range bound) and market conditions do not support directional view.

In this kind of market environment we have low conviction, low liquidity state and elevated uncertainty.

Application

Having an idea about speculators conviction can help you manage your trades or refine your trading strategy.

We use concentration (bubble size) and clustering (bubble color) in spreading.

Examples

This is an example for speculative spreading activity (Money Managers) in copper.

Ranging market with high amount of spreading. (uncertainty)
Bullish trend with low spreading activity. (higher conviction)

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