Frequently Asked Questions
Will your indicators work on an intraday level?
Our indicators were especially designed for short-term
trading applications (i.e., intraday and swing trades).
What is the win / loss ratio of your chart indicators?
Based on an analysis of historical data (available back to
1997) and depending on the type of trading, on average 5 of 7 trades have
been profitable.
Do your indicators work on all timeframes?
Our volume-based indicators work for all timeframes. This
can be verified by using the intraday history feature of our charts, which
is available for data going all the way back to 1997.
On what do you base your indicators?
Our indicators are based on intraday volume surges.
Historically, it has been proven that volume surges tend to precede price
trend reversals. The reason for this is that large volume surges point to
institutional money entering and exiting the market. More...
What is the difference between buying and selling volume?
We call volume produced during a price (index) advance
“selling volume”; conversely, “buying volume” is the volume generated during
a price / index decline. Typically, significant buying surges tend to
precede reversals to the up-side while large selling surges tend to precede
reversals to the down-side.
Our SBV (Selling Buying Volume) Indicator shows which kind
of volume currently dominates in the market: Buying or selling volume. For
instance, a positive SBV indicator (which is marked red on our charts)
reveals that a major part of the recent volume activity has been selling
volume. The magnitude and duration of the red areas seen on the chart
reflect the magnitude and duration of the associated selling surges. The
charts allow us to anticipate how strong and how prolonged a coming reversal
might be. The opposite is true for situations where the SBV indicator is
negative (i.e., where the SBV indicator is dominated by green areas on the
charts). More...
What makes your charts unique?
We have developed a revolutionary new technology that
allows us to analyze volume activity on a totally new level. We extract
“atypical” volume activity that is a result of market sentiment (as opposed
to the “typical” volume variations that tend to appear every day). Our
analyses are all carried out and charted in real time. For futures trading,
we analyze what we call “combined modulated volume”. We also analyze selling
and buying volume (see above for definitions) on the fly. Furthermore, we
have created a new, unique volume indicator – the SBV Indicator – which is
available only through us.
More...
How difficult is it to trade with your charts?
Trading futures is very simple when using our charts with
combined modulated volume: Buy on buying surges and sell on selling surges.
More...
How many intraday trade signals may be triggered by volume
surges?
Depending on the market, from one to five, sometimes even
more trades may be generated. The largest number of trades may be generated
during a flat market (see example here) whereas perhaps only one (or even no
trades at all) may be generated during a rallying market. 1-day and 2-hour
charts are best when trading a flat market. Larger timeframes – such as
15-day to 1-year charts – may alert traders to coming rallies.
Can I use intraday charts to view historical data and
volume indicators?
Yes, our charts allow you to test our indicators going
back to October 1997 (for the S&P 500 e-mini), July 1999 (for the NASDAQ 100
e-mini), October 2001 (for the Russell 2000 e-mini) and May 2002. The
timeframes for which you can analyze historical data range from a 10-year
view all the way down to a 2-hour view (where one bar = 1 minute).
Can other technical studies be used in conjunction with
your volume indicators?
Yes; in fact, we encourage you to do so, as this may
substantially increase the likelihood of winning trades. For instance, some
of our subscribers combine the RSI with our SBV indicators. A possible
trading scenario using these two indicators together could look like this: :
A) Go long when buying surges appear AND when RSI readings are low;
B) Sell when selling surges appear AND when RSI readings are high. MACD, Stochastics, and other technical indicators may also be used in such
fashion. These strategies are best fine-tuned to suit a trader’s personal
needs and risk tolerance.
Why are there no Russell 1000 e-mini and S&P 400 e-mini
volume charts?
Because it is difficult to analyze intraday volume
patterns for e-mi futures that are not actively traded, we do not provide
volume charts for the Russell 1000 e-mini and the S&P 400 e-mini. These have
a low trading volume; as an alternative to trading these e-mini contracts,
we would suggest trading the Russell 1000 and the S&P 400 indexes. You may
access the volume charts for major US indexes at
www.MarketVolume.com.
Why you do not provide e-mini volume charts for separate
expiration series?
We do not provide volume charts for separate expiration
series simply because the volume of each expiration series is affected by
the upcoming expire date. Typically, the closer to expiration, the more
actively e-mini index futures are traded. This makes it difficult to analyze
current volume surges and compare them with historical data. Only the use of
combined e-mini futures volume allows a proper analysis of futures volume
over longer periods of time.
Is the data on your futures charts displayed in real-time
or with a delay?
Because of exchange fees and the significant amount of
paperwork involved, the e-mini prices on our charts appear with a 10-minute
delay (in accordance with exchange regulations).
All other indicators - including our new SBV indicator and
the combined modulated volume indicator - are calculated according to the
certain algorithms, and because they do not reflect exchange data, are
presented in real-time.
On the 1-day and 2-hour views, you can see an orange line
which represents the corresponding cash index. The index price line is
shifted so that is stays in the same window as the line representing the
e-mini futures.
What does the cash index I see on your chart represent?
On 1-day and 2-hour views, you can see an orange line
which represents the corresponding cash index. Since e-mini prices are shown
with a delay, in order to see the most recent market direction, we show the
cash index line (which in most cases behaves like the e-mini futures line).
For instance, on the S&P 500 e-mini charts, the orange line represents the
S&P 500 index. The cash index price is shifted to stay in the same window as
the e-mini futures line.
Can you give me an example of the S&P 500 cash index?
The S&P 500 Cash (SPX) index represents “the market”. The
index is calculated from an average of all 500 stocks comprising the index.
The calculated cash index value differs from the S&P 500 futures value: The
cash index is calculated about once a minute, whereas the futures index can
change instantaneously - whenever a bid or an ask price is hit in the pit or
at the electronic exchange.
S&P 500 index. s&p 500 emini. nasdaq 100 index. Russell 1000. Russell 2000 index. DJI. Emini quotes. Nasdaq 100. market. analysis. chart. e-mini futures. trading. Daytrading. .
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