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How to read the New York Stock
Exchange Indicator?
When interpreting the chart above, you need to remember
that the most important factor is the relationship between Index
Price and the Volume Moving Average (VMA).
These two signals are excellent longer-term indicators of where the
market is heading. In the first example we see that the index has been
trending down for over a week, and that the VMA during that period has
been steadily increasing. This steadily increasing VMA signals that
there is a lot of buying pressure and that the market will change
direction. The peak of the VMA signals that the market will take this
new direction. On the second signal we can see that the market did
change direction substantially and that the only reason for an
increasing VMA here is profit-taking. This profit-taking will cause
the index to change direction again until there is renewed buying
pressure in the future.
Below is an example of how one of our exclusive
institutional investors used this signal for
the index to maximize profits by
trading some of the derivatives of the NYSE index:
Details of the above trades, and the derivatives used for this index, can be found in the detailed overview and in the member's section of our site.
Listed below are some of the derivatives
which you can trade using this indicator:
| Securities |
Issuer |
Type |
Symbol / Root |
|
NYSE Composite Index Options |
CBOE |
Options |
NYA |
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By trading index securities using our volume indicators instead of stocks, you gain stability and predictability that stocks do not have. An index is a far more logical in it's actions than the individual stocks it's based upon.
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