Examples of a Short-Term Trades
The following example illustrates the basic principles behind MarketVolume®'s analysis.
Above, you can see the short-term relationship between price (i.e., index level) and volume. An increase in volume subsequently affects the movement of price, causing the index to change direction. You can see that when the Volume Moving Average surges, the index reacts. With this knowledge, you can trade confidently and profitably. Index values will always (sometimes immediately, sometimes with a delay) react to volume surges, and the greater the magnitude of a surge (or series of surges), the stronger the ensuing reaction.