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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 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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