S&P
500:
Examples For Mid-Term Traders
We define a mid-term trend as a general market trend that usually
lasts for several weeks.
The following example shows the basic principles behind our MarketVolume®
analysis. The chart shows the relationship between the index price and the
Volume Moving Average over the mid-term.
The above chart was created using our
JavaVolume® charting technology. Our JavaVolume® charts enable you to
anticipate future market movements and trend changes.
Above, you see the relationship between price and
volume over the mid-term. A peak in the volume moving average subsequently
affects price movements, causing the index to change direction.
You can see that almost every time the Volume
Moving Average peaks, the index reacts. Knowing this, you can make numerous
profitable trades.
The blue line in the chart is the Volume Moving
Average (VMA).
If you would like further information about this
topic, please refer to our Chart School.
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