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S&P 500:
Examples of a Short-Term Trades


We define a "short-term" trend as a general market trend that usually lasts from a few hours to several days.

The following example illustrates the basic principles behind MarketVolume®'s analysis.

Chart 1. Relationship between surges in the volume moving average (VMA) and index reversal points. NASDAQ 100 index. March 21, 2006.

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.

Index Trades based on selling and buying volume Extent of Trend Reversal
NASDAQ 100 Buy on March 22, 2006 and sell on March 30, 2006 2.5% up
NASDAQ 100 Sell short on April 4, 2006 and sell on April 17, 2006 2.8% down
 
Disclaimer: The chart example is intended for educational purposes only – it does not constitute trading advice, nor does it make or imply any market trend predictions.

 

NASDAQ 100 Examples:
April 2006 (Short-Term)
March 2006 (Short-Term)

Example 1 (Mid-Term)*

Example 2 (Short-Term)*
Example 3 (Short-Term)

Example 4 (Long-Term)
Example 5 (Mid-Term)

Example 6 (Mid-Term)
Example 7 (Short-Term)

S&P 500 Examples:
2005 Mid-Term Summary
2005 Mid-Term Summary (trades)
July 2005 (Mid-Term)
June 2005 (Long-Term)
March 2005 (Short-Term)
April, 2004
April, 2004 (Long-Term)
April, 2004 (Mid-Term)
March, 2004 (Short-Term)
Example 2 (Mid-Term)

Example 3 (Short-Term)
Example 4 (
Long-Term)
Example 5 (Long-Term)
Example 6 (Mid-Term)
Example 7 (Mid-Term)
Example 8 (Mid-Term)
Example 9 (Short-Term)

Example 10 (Short-Term)

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