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Volume analysis can be a challenge, particularly when it is applied to intraday timeframes. Our research team has recently developed a unique volume indicator that is not available anywhere else. Our SBV (Selling & Buying Volume) Oscillator allows you to incorporate a simple mechanical system into the volume analysis process. This system will trigger a buy signal on Selling volume and a sell signal on Buying volume.

You can use this simple trading system to trade the SBV oscillator. The system uses four simple rules. It goes without saying that you should adjust any trading approach (including this particular system) to suit your personal trading style. For instance, you may wish to create additional rules, apply a stop-loss strategy, set profit targets, etc.

The main points of the SBV trading system can be described in two parts:

1. Trading Long
2. Trading Short

The relationship between price (i.e., index levels) and volume is evident. An increase in volume ultimately affects price movement, causing an index (price) to change direction. When Buying volume dominates (i.e., when our SBV indicator is green), an index (stock) will react with a downward push. This occurs due to the large accumulation of Buying volume (in other words, the prolonged positive money flow) leads to overbuying of an index (stock or any other security). The SBV Oscillator show this volume accumulation and, when it begins to move down, it indicate an approaching change in market sentiment and the possible occurrence of a downward move. The opposite is also true: When Selling volume dominates (i.e., the SBV indicator is red), prices tend to move higher. This knowledge allows you to place trades with more confidence and to achieve higher profits.

We hope that our unique volume indicators will help you in your market analysis and that they will give you more confidence in your trading.

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