Volume Indicators Quotes

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Here is an example of how much people can profit from our service within a single month of trading. MarketVolume employs an institutional investor to make use of our volume signals, and make trading decisions based upon them. Below is a table of how well he did just in the last month.

You can see more details about the above table in the Chart School section of our site under 'Chart of the Week'.

We often get questions from our customers about why some peaks in the volume moving average (VMA) are taken into consideration and some are not. Due to the number of customers whom have asked this question, we feel it appropriate to explain to everyone in more detail about how our indicators work for different types of trading and situations.

With the chart below we try to explain how short-term and mid-term traders can make profitable trades using our indicators.

Example for mid-term traders playing long.
(They are looking for VMA surges on a declining index)

In the past week there have been many points at which there was a large increase in the VMA, but the index did not substantially change direction. This is the formation of what we call 'concurrent volume signals' where the build-up of large amounts of supporting volume are signalling the formation of a longer term support level for the index. In this situation it is most always profitable to buy on the surges of the VMA and average out the price of your contracts in anticipation of the market's upcoming reversal.

Example for Short-Term traders playing long.
(They are looking for VMA surges on a declining index)

On each new volume moving average (VMA) surge we increased the quantity of contracts in order to lower the average purchase price of all the contracts.

Players who purchased long-position contracts at any point where the index was declining and there was a large surge in the VMA are now in a profitable position.

You may ask who was able to predict the lowest points in this example. These are the institutional investors who know where a great many stop-loss orders were placed, and if they drove the index to that point they would be able to purchase those shares from the people whose stop-loss orders were executed. Some of these people were forced to sell their positions at this point because they were under the pressure of their margin accounts.

We hope that the examples have helped you gain a better understanding of how to use our indicators.

NEXT: Critical Volume

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