Charting Technical Analysis for S&P 500

NASDAQ 100:
Examples of a Short-Term Trades

We define a "short-term” trend as a general market trend that usually lasts from a few hours to several days.

The following example illustrates the basic principles behind MarketVolume®’s analysis.

Chart 1. Relationship between surges in the volume moving average (VMA) and index reversal points. NASDAQ 100 index. March 21, 2006.

Above, you can see the short-term relationship between price (i.e., index level) and volume. An increase in volume subsequently affects the movement of price, causing the index to change direction. You can see that when the Volume Moving Average surges, the index reacts. With this knowledge, you can trade confidently and profitably. A simple trading strategy based on this principle may look as follows:

Go short after a significant selling surge (we define selling surge as a surge in volume that occurs as the index moves higher). Cover on a (smaller) buying surge (a buying surge is defined as a surge in volume that occurs as the index moves lower).
Go long after a significant buying surge (defined as a surge that occurs as the index declines). Sell on a (smaller) selling surge (a selling surge is defined as a surge in volume that occurs as the index pushes higher).

Index	Extent of Trend Reversal
NASDAQ 100	35 points down
S&P 500	10 points down
Russell 200	12 points down

Question: Can a trading strategy based on volume surges include other technical indicators?

Answer: Yes, our volume indicators work well with price-based technical indicators. Using volume as an additional indicator may substantially increase the probability of making successful trades, and reduce the risk of losses. While there is no indicator that is 100% accurate, combining our volume indicators together with classic indicators such as MACD, RSI, Stochastics, and others, may enable better, safer trades.

Disclaimer: The chart example is intended for educational purposes only – it does not constitute trading advice, nor does it make or imply any market trend predictions.

NASDAQ 100 Examples:
April 2006 (Short-Term)

March 2006 (Short-Term)
Example 1 (Mid-Term)*
Example 2 (Short-Term)*
Example 3 (Short-Term)
Example 4 (Long-Term)
Example 5 (Mid-Term)
Example 6 (Mid-Term)
Example 7 (Short-Term)

S&P 500 Examples:
2005 Mid-Term Summary
2005 Mid-Term Summary (trades)
July 2005 (Mid-Term)
June 2005 (Long-Term)
March 2005 (Short-Term)
April, 2004
April, 2004 (Long-Term)
April, 2004 (Mid-Term)
March, 2004 (Short-Term)
Example 2 (Mid-Term)
Example 3 (Short-Term)
Example 4 (Long-Term)
Example 5 (Long-Term)
Example 6 (Mid-Term)
Example 7 (Mid-Term)
Example 8 (Mid-Term)
Example 9 (Short-Term)
Example 10 (Short-Term)