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Description - AMEX Oil Index XOI
The AMEX Oil Index is price-weighted; this means its performance is measured according to the changes in the sum of the prices of its component stocks. Price weighting is commonly used in the building of indexes. The AMEX Oil Index remains the most popular measure of the oil-stock sector today. The XOI also lists options, which are one way investors can place trades on the AMEX Oil index. The XOI’s volume patterns are a key parameter to monitor because trading volume is driven by greed and fear. Volume surges can point to good buying and selling opportunities for investor whishing to speculate on the oil sector. Significant volume surges in oil-stocks tend to occur near major tradable highs and lows.
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