THE HAnDbOOk Of TECHnICAL AnALySISthe next contract. It is the second further‐out contract with an expiry closest to
the nearby contract. Contracts further out are also referred to as back‐month
contracts. Traders may choose to continue rolling over into the next nearby or
front‐month contract. They may also choose to only roll over into the next month
contract, that is, two contracts further out, instead of rolling over into the next
nearby contract. Once liquidity starts to subside, traders will normally start to
roll over into the next nearby contract. Sometimes traders may also enter into two
figure 3.29 Comparing Volume Action on the Daily Chart of Silver July and
September 2011 Futures.
Courtesy of Stockcharts.com
figure 3.30 Volume Action on the Continuous Daily Chart of Silver.
Courtesy of Stockcharts.com