SBV Technical Analysis - Trading Volume with Confidence
Simple Trading System on SBV
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+10.4% on the S&P 500 - follow Selling/Buying Volume Flow
This week's SBV chart example is based on the 15-day SBV Flow (Selling/Buying Volume Flow) S&P 500 chart and it is a continuation of the previous chart examples where the last signal was to buy Long.
Chart 1. S&P 500 index futures. 15-day view. 1 bar = 15 minutes. SBV Flow (14,5)
It's Simple and Profitable
- Rule #1: Go "Long" ("Buy") when SBV Flow crosses zero line (becomes positive) and moves above it.
- Rule #2: Go "Short" ("Sell Short") when an indicator crosses zero line (becomes negative) and starts to move below it.
Table 1: Trades based on the 5-rule system.
| Date | Motivation | Signal | Index | Profit (points) |
| 03/26/2013 | Rule#1 | Buy | 1560 | +1 |
| 04/01/2013 | Rule#2 | Sell Short | 1561 | -1 |
| 04/01/2013 | Rule#1 | Buy | 1562 | +4 |
| 04/02/2013 | Rule#2 | Sell Short | 1566 | +18 |
| 04/05/2013 | Rule#1 | Buy | 1548 | +37 |
| 04/12/2013 | Rule#2 | Sell Short | 1585 | +16 |
| 04/16/2012 | Rule#2 | Buy | 1569 | -9 |
| 04/17/2012 | Rule#1 | Sell Short | 1560 | +12 |
| 04/19/2012 | Rule#2 | Buy | 1548 | +37 |
| 04/26/2013 | Rule #1 | Sell Short | 1585 | +1 |
| 04/26/2013 | Rule #2 | Buy | 1584 | +5 |
| 04/30/2013 | Rule #1 | Sell Short | 1589 | -7 |
| 04/30/2013 | Rule #2 | Buy | 1596 | -7 |
| 05/01/2013 | Rule #1 | Sell Short | 1589 | -2 |
| 05/02/2013 | Rule #2 | Buy | 1591 | +38 |
| 05/09/2013 | Rule #1 | Sell Short | 1629 | -1 |
| 05/09/2013 | Rule #2 | Buy | 1630 | -2 |
| 05/10/2013 | Rule #1 | Sell Short | 1628 | -5 |
| 05/09/2013 | Rule #2 | Buy | 1633 | +21 |
| 05/15/2013 | Rule #1 | Sell Short | 1654 | -5 |
| 05/16/2013 | Rule #2 | Buy | 1659 | +12 |
| Total: | +163 points (+10.4%) | |||
Note: Our charts are unique in that they give traders the opportunity to choose the specific chart settings that best fit their personal trading styles and risk tolerances. Traders can thus develop and test their own trading systems. On our charts, you can scroll back in history to test any system that you have created.
Disclaimer: The chart example is intended for educational purposes only and does not constitute trading advice or make or imply any market trend prediction.
