For Short-Term Traders
The above chart was extracted from our JavaVolume Charting technology. These charts enable you to predict future market movements and trends by giving you access to real-time volume and index data, which include a volume moving average, index moving averages, up/down volume, the ability to draw trendlines directly on the chart, as well as many other features no listed here.
Above you can see the short-term relationship between price and volume. An increase in volume subsequently affects the movement of price, causing it to change direction.
You can see that almost every time the Volume Moving Average peaks, the index reacts. One can make many profitable trades knowing this.
The blue line in the chart is a trend of Volume, which we call the Volume Moving Average (VMA).
Those traders who need more information can find it in our Chart School.