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This method is geared
towards short-term active traders who want to trade index
derivatives and make approximately 5-10 trades per week.
Our "Daily Market
Outlook"
can be used to supplement your trades, but we highly suggest that
active traders learn to analyze the market on the fly.
How to make money
using our Market Stage reports:
- The main goal of our volume indicators is to
show the sentiment of the market at any given point of time. Our
volume indicators actually shows how many active investors are
in the market at any point in time!
- For short-term traders it is still important
to know what the general mid-term market trend is, as you don't
want to trade against the market.
As any investor knows, changes in price are the
direct result of changes in demand — in other words, volume!
That's why any appreciable volume surge is generally followed by a
change in the market's direction. How long and how dramatic that
change in direction will be is a function of how large and how
long the VMA surge is.
An article
published in the May 15th issue of Nature Magazine
entitled "Theory of Power Law Distributions in Financial Market
Fluctuations" discusses that any change in price is proportional
to the square root of the number of shares traded. It only took
analysts six years to catch up to our theory of volume, but better
late than never!
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