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E-Mini Index Futures:
S&P 500 E-mini SBV Indicator Example

June 19, 2006

Important: The 66% level for the SBV indicator was determined in relation to the prevailing market conditions at the time the examples below were selected. In order to establish the optimal critical levels for the SBV indicator, traders should consider their personal risk tolerance, the prevailing market conditions, and review a chart history of prior volume surges (including the magnitude - i.e., the level reached by the SBV indicator).

Our unique charts give the ability to back-test any system adjustment you make. You can go back a few years in a history (use the scroll buttons found on the left and right bottom corner of the chart).

In the following example, we used a simple trading system based on our SBV indicator:

1. Once the SBV indicator has dropped below minus 66% (the SBV indicator will show green), wait for it to rally above that level, then enter a long position;
2. Take profits once the price / index has risen to your pre-determined profit target level OR when the SBV indicator exceeds plus 66% (the SBV indicator will show red), whichever occurs first;
3. Take a loss if the price / index declines below your pre-defined stop loss level.