How to use Selling & Buying Volume (SBV) Indicators:
The following three simple steps summarize how you can
use our SBV indicators:
- On a chart,
locate the previous index reversal point. For a long-term analysis, use
4- to 10-year charts; for a mid-term analysis, use 60-day to 1-year charts;
for short term applications, use one- to 60-day charts. More...
- Locate the
volume surge associated with this reversal point. By looking at the SBV
indicator, establish the magnitude and duration of the buying volume
leading up to the reversal (from a downtrend to an uptrend) or the selling
volume for a downside reversal. More...
- Look at the SBV
indicators and see if there is a correlation between recent volume surges
and the volume surge preceding the previous index reversal point.
Compare the recent accumulation of volume in opposite to the volume in
previous reversal point. For instance, if the previous reversal point was
from a downtrend to an uptrend, then correlate the accumulation of recent
selling volume with the magnitude and duration of the buying volume
that precedes the reversal. More...
- Based on the correlation you found between the recent
volume (that is opposite to the volume in previous reversal point) and
volume preceding the previous reversal make conclusion about current
trend. More...
| Chart 1: |
Three simple steps to use SBV
indicators |
 |
More to read:
Define Long-term trend
by using SBV Indicators
|
