NEMAC    Net Effective Market Activity Components   2000
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Home: The publication of NEMA in 2011 was made possible by a discovery by Donald Iglehart, from Stanford.  He developed a formula that gave the number of closed contracts (longs and shorts that covered), given the day's volume and the change in open interest.  NEMA gives numbers for the four types of position changes that occurred during the day.

Trading during the day results in changes in the positions held by traders.  There are four such changes: new longs (NL), longs that covered (LC), new shorts (NS), and shorts that covered (SC).  The number of contracts for each, when totaled, equals the day's volume.

One of the ways the above data can be utilized is to calculate the daily trend.  This increases the probability of knowing the future price.  This algorithmic trend is shown on each chart as a red line.

Two popular futures contracts are shown.  The two contracts are the S&P500, and GOLD ftures.

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Just as the Black and Scholes pricing model is the benchmark for pricing options, the use of daily market position changes (NEMAC) will become the new benchmark for technical analysis.