SBV Technical Analysis - Trading Volume with Confidence
Simple SBV Trading System Blog
Simple System
Friday, May 21, 2010
This week's SBV chart example is based on the 5-day SBV Histogram S&P 500 (^SPX) chart.
+65 points on the S&P 500 in a week
Chart 1. Relationship between the SBV Histogram and index reversal points. S&P 500 index. 5-day view. 1 bar = 5 minutes. SBV Histogram(20,9)
In our trading example, we applied the following simple system which is based on our SBV Histogram:
Once the SBV Histogram has advanced above zero level (after having been below that level), we will enter a long position;
Once the SBV Histogram has fallen below a zero level (after having been above that level), we will enter a short position;
Close Position at the end of a trading session.
Detailed system description with explanation of used rules could be found in our "SBV Trading System" tutorial.
Table 1: Trades based on the 5-rule system.
Time
Motivation
Signal
Index
Profit (points)
5/17/2010
10:50
Rule #2
Sell Short
1135.00
+14.00
12:35
Rule #1
Buy
1121.00
+4.00
14:25
Rule #2
Sell Short
1125.00
-3.00
14:40
Rule #1
Buy
1128.00
0.00
15:15
Rule #2
Sell Short
1128.00
-3.50
15:30
Rule #1
Buy
1131.50
+5.25
15:30
Rule #3
Cash
1136.75
5/18/2010
10:00
Rule #2
Sell Short
1143.25
+8.75
12:25
Rule #1
Buy
1134.50
-1.50
13:00
Rule #2
Sell Short
1133.00
+5.00
13:35
Rule #1
Buy
1128.00
-0.25
13:45
Rule #2
Sell Short
1127.75
+4.75
15:15
Rule #1
Buy
1123.00
-2.25
16:00
Rule #3
Cash
1120.75
5/19/2010
10:20
Rule #2
Sell Short
1106.50
-5.00
10:40
Rule #1
Buy
1111.50
+1.00
10:55
Rule #2
Sell Short
1112.50
+4.50
12:00
Rule #1
Buy
1108.00
+7.25
14:10
Rule #2
Sell Short
1115.25
-2.50
15:50
Rule #1
Buy
1117.75
-2.75
16:00
Rule #3
Cash
1115.00
5/20/2010
9:45
Rule #2
Sell Short
1092.25
+5.00
11:05
Rule #1
Buy
1087.25
-5.00
12:25
Rule #2
Sell Short
1082.25
-3.50
13:30
Rule #1
Buy
1085.75
+1.75
15:05
Rule #2
Sell Short
1087.50
+15.75
15:30
Rule #3
Cash
1071.75
5/21/2010
10:10
Rule #1
Buy
1075.50
-0.50
10:35
Rule #2
Sell Short
1075.00
+2.75
10:45
Rule #1
Buy
1072.25
+14.00
12:40
Rule #2
Sell Short
1086.25
+2.50
13:55
Rule #1
Buy
1083.75
-2.50
14:05
Rule #2
Sell Short
1081.25
-2.25
15:50
Rule #1
Buy
1083.50
+4.00
15:30
Rule #3
Cash
1087.50
Total:
+65.75 (+5.8%)
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.
