- Technical Analysis & Trading System

SBV Technical Analysis - Trading Volume with Confidence

Simple SBV Trading System Blog


 

DJI Index


On 2012-01-27, By MarketVolume.com Team

+8% on the DJI in a month

This week's SBV chart example is based on the 15-day SBV(20) Dow Jones Industrials (DJI) chart and is continuation of the example published on January 20, 2012 where the last generated signal was "Buy".

Chart 1. Relationship between the SBV Oscillator and
index reversal points. DJI index. 15-day view. 1 bar = 15 min. SBV(20)

DJI Chart analysis - January 2012

It's Simple and Profitable

Detailed system description with explanation of used rules could be found in our "SBV Trading System" tutorial.

Table 1: Trades based on the 5-rule system.
TimeMotivationSignalIndexProfit
(points)
12/20/2011Rule #2Buy12008 +31
12/21/2011Rule #4Sell Short12039-20
12/21/2011Rule #2Buy12059+106
12/22/2011Rule #4Sell Short12165-6
12/22/2011Rule #3Buy12171+126
12/27/2011Rule #4Sell Short12305 +130
12/28/2011Rule #2Buy12175 +75
12/29/2011Rule #4Sell Short12250 +3
12/29/2011Rule #3Buy12247 +25
12/29/2011Rule #4Sell Short12272 +31
12/30/2011Rule #2Buy12241+190
01/03/2012Rule #5Cash12431  
01/03/2012Rule #2Buy12421 +13
01/03/2012Rule #1Sell Short12434 +47
01/04/2012Rule #2Buy12387 +2
01/04/2012Rule #5Cash12389  
01/05/2012Rule #4Sell Short12340 -19
01/05/2012Rule #5Cash12359  
01/06/2012Rule #4Sell Short12377 +9
01/06/2012Rule #5Cash12368  
01/09/2012Rule #2Buy12378 +77
01/10/2012Rule #4Sell Short12450 -12
01/10/2012Rule #3Buy12462 +9
01/10/2012Rule #4Sell Short12471 +66
01/11/2012Rule #2Buy12405 +16
01/11/2012Rule #1Sell Short12421 -10
01/11/2012Rule #2Buy12431 -20
01/12/2012Rule #4Sell Short12411 -30
01/12/2012Rule #5Cash12441  
01/13/2012Rule #4Sell Short12337 -41
01/13/2012Rule #2Buy12378 +147
01/17/2012Rule #4Sell Short12525 -14
01/18/2012Rule #2Buy12539 +57
01/19/2012Rule #4Sell Short12596 -71
01/20/2012Rule #3Buy12667 +22
01/23/2012Rule #4Sell Short12689 +27
01/24/2012Rule #2Buy12661 -34
01/25/2012Rule #1Sell Short12627 -43
01/25/2012Rule #2Buy12670 +67
01/26/2012Rule #4Sell Short12737 +74
Total:+1030
(+8.6%)

Adding a Stop-Loss to the system may substantially reduce losses and, in some cases, even double the summary profit.

Disclaimer: The chart example is intended for educational purposes only and does not constitute trading advice or make or imply any market trend prediction.

DJI


On 2012-01-20, By MarketVolume.com Team

+8% on the DJI in a month

This week's SBV chart example is based on the 15-day SBV(20) Dow Jones Industrials (DJI) chart and is continuation of the example published on January 6, 2012.

Chart 1. Relationship between the SBV Oscillator and
index reversal points. DJI index. 15-day view. 1 bar = 15 min. SBV(20)

DJI Chart technical analysis - January 2012

It's Simple and Profitable

Detailed system description with explanation of used rules could be found in our "SBV Trading System" tutorial.

Table 1: Trades based on the 5-rule system.
TimeMotivationSignalIndexProfit
(points)
12/20/2011Rule #2Buy12008 +31
12/21/2011Rule #4Sell Short12039-20
12/21/2011Rule #2Buy12059+106
12/22/2011Rule #4Sell Short12165-6
12/22/2011Rule #3Buy12171+126
12/27/2011Rule #4Sell Short12305 +130
12/28/2011Rule #2Buy12175 +75
12/29/2011Rule #4Sell Short12250 +3
12/29/2011Rule #3Buy12247 +25
12/29/2011Rule #4Sell Short12272 +31
12/30/2011Rule #2Buy12241+190
01/03/2012Rule #5Cash12431  
01/03/2012Rule #2Buy12421 +13
01/03/2012Rule #1Sell Short12434 +47
01/04/2012Rule #2Buy12387 +2
01/04/2012Rule #5Cash12389  
01/05/2012Rule #4Sell Short12340 -19
01/05/2012Rule #5Cash12359  
01/06/2012Rule #4Sell Short12377 +9
01/06/2012Rule #5Cash12368  
01/09/2012Rule #2Buy12378 +77
01/10/2012Rule #4Sell Short12450 -12
01/10/2012Rule #3Buy12462 +9
01/10/2012Rule #4Sell Short12471 +66
01/11/2012Rule #2Buy12405 +16
01/11/2012Rule #1Sell Short12421 -10
01/11/2012Rule #2Buy12431 -20
01/12/2012Rule #4Sell Short12411 -30
01/12/2012Rule #5Cash12441  
01/13/2012Rule #4Sell Short12337 -41
01/13/2012Rule #2Buy12378 +147
01/17/2012Rule #4Sell Short12525 -14
01/18/2012Rule #2Buy12539 +57
01/19/2012Rule #4Sell Short12596 -71
01/20/2012Rule #3Buy12667 +57
Total:+974
(+8.1%)

Adding a Stop-Loss to the system may substantially reduce losses and, in some cases, even double the summary profit.

Disclaimer: The chart example is intended for educational purposes only and does not constitute trading advice or make or imply any market trend prediction.

Technical Analysis


On 2012-01-13, By MarketVolume.com Team

+42% on the S%P 500

This week's SBV chart example is based on the 60-day SBV(20) S&P 500 chart and is a continuation of the S&P 500 chart example that was published on December 16, 2011.

Chart 1. Relationship between the SBV Oscillator and
index reversal points. S&P 500 index. 60-day view. 1 bar = 60 min. SBV(20)

SP 500 Chart - January 2012

It's Simple and Profitable

Detailed system description with explanation of used rules could be found in our "SBV Trading System" tutorial.

Table 1: Trades based on the 5-rule system.
TimeMotivationSignalIndexProfit
(points)
5/23/2011Rule #4Sell Short1318 +3
5/25/2011Rule #2Buy13150
6/01/2011Rule #4Sell Short1315+23
6/09/2011Rule #2Buy1292-18
6/10/2011Rule #1Sell Short1274 +1
6/13/2011Rule #2Buy1275 -9
6/15/2011Rule #1Sell Short1266 -6
6/16/2011Rule #2Buy1272 +3
6/17/2011Rule #1Sell Short1275-2
6/20/2011Rule #2Buy1277 -10
6/23/2011Rule #4Sell Short1267 -16
6/27/2011Rule #2Buy1283 +55
7/6/2011Rule #4Sell Short1338 +7
7/13/2011Rule #2Buy1331 -12
7/13/2011Rule #5Cash1319  
7/19/2011Rule #2Buy1319 +19
7/25/2011Rule #4Sell Short1338 +189
8/11/2011Rule #2Buy1149 +44
8/16/2011Rule #4Sell Short1193 +47
8/23/2011Rule #2Buy1146 +51
8/29/2011Rule #4Sell Short1197 -5
8/30/2011Rule #3Buy1202 +5
9/01/2011Rule #4Sell Short1207 +12
9/07/2011Rule #2Buy1195 -45
9/09/2011Rule #5Cash1150  
9/13/2011Rule #2Buy1172 +21
9/20/2011Rule #4Sell Short1203 +58
9/26/2011Rule #2Buy1145 +24
9/28/2011Rule #4Sell Short1169 +25
10/05/2011Rule #2Buy1143 +51
10/13/2011Rule #4Sell Short1194 -14
10/18/2011Rule #5Cash1208  
10/25/2011Rule #5Sell Short1237 -48
10/27/2011Rule #5Cash1285  
10/31/2011Rule #5Sell Short1269 +19
11/03/2011Rule #2Buy1250 -5
11/07/2011Rule #5Sell Short1245 +7
11/10/2011Rule #5Cash1238  
11/22/2011Rule #2Buy1188 -17
11/23/2011Rule #1Sell Short1171 +1
11/23/2011Rule #2Buy1170 +87
12/06/2011Rule #4Sell Short1257+16
12/13/2011Rule #5Cash1241 
12/15/2011Rule #2Buy1219+15
12/21/2011Rule #5Cash1234 
12/28/2011Rule #4Sell Short1253-17
01/03/2012Rule #5Cash1270 
01/03/2012Rule #4Sell Short1277 
Total:+559
(+42.4%)

Adding a Stop-Loss to the system may substantially reduce losses and, in some cases, even double the summary profit.

Disclaimer: The chart example is intended for educational purposes only and does not constitute trading advice or make or imply any market trend prediction.

DJI Chart


On 2012-01-06, By MarketVolume.com Team

+6% on the DJI in two weeks

This week's SBV chart example is based on the 15-day SBV(20) Dow Jones Industrials (DJI) chart.

Chart 1. Relationship between the SBV Oscillator and
index reversal points. DJI index. 15-day view. 1 bar = 15 min. SBV(20)

DJI Chart - January 2012

It's Simple and Profitable

Detailed system description with explanation of used rules could be found in our "SBV Trading System" tutorial.

Table 1: Trades based on the 5-rule system.
TimeMotivationSignalIndexProfit
(points)
12/20/2011Rule #2Buy12008 +31
12/21/2011Rule #4Sell Short12039-20
12/21/2011Rule #2Buy12059+106
12/22/2011Rule #4Sell Short12165-6
12/22/2011Rule #3Buy12171+126
12/27/2011Rule #4Sell Short12305 +130
12/28/2011Rule #2Buy12175 +75
12/29/2011Rule #4Sell Short12250 +3
12/29/2011Rule #3Buy12247 +25
12/29/2011Rule #4Sell Short12272 +31
12/30/2011Rule #2Buy12241+190
01/03/2012Rule #5Cash12431  
01/03/2012Rule #2Buy12421 +13
01/03/2012Rule #1Sell Short12434 +47
01/04/2012Rule #2Buy12387 +2
01/04/2012Rule #5Cash12389  
01/05/2012Rule #4Sell Short12340 -19
01/05/2012Rule #5Cash12359  
01/06/2012Rule #4Sell Short12377 +9
01/06/2012Rule #5Cash12368  
Total:+743
(+6.2%)

Adding a Stop-Loss to the system may substantially reduce losses and, in some cases, even double the summary profit.

Disclaimer: The chart example is intended for educational purposes only and does not constitute trading advice or make or imply any market trend prediction.

Trading SPX Index


On 2011-12-30, By MarketVolume.com Team

+44% on the S&P 500 in 7 months

This week's SBV chart example is based on the 60-day SBV(20) S&P 500 chart and is a continuation of the S&P 500 chart example that was published on December 16, 2011.

Chart 1. Relationship between the SBV Oscillator and
index reversal points. S&P 500 index. 60-day view. 1 bar = 60 min. SBV(20)

SP 500 Money Flow Analysis - December 2011

It's Simple and Profitable

Detailed system description with explanation of used rules could be found in our "SBV Trading System" tutorial.

Table 1: Trades based on the 5-rule system.
TimeMotivationSignalIndexProfit
(points)
5/23/2011Rule #4Sell Short1318 +3
5/25/2011Rule #2Buy13150
6/01/2011Rule #4Sell Short1315+23
6/09/2011Rule #2Buy1292-18
6/10/2011Rule #1Sell Short1274 +1
6/13/2011Rule #2Buy1275 -9
6/15/2011Rule #1Sell Short1266 -6
6/16/2011Rule #2Buy1272 +3
6/17/2011Rule #1Sell Short1275-2
6/20/2011Rule #2Buy1277 -10
6/23/2011Rule #4Sell Short1267 -16
6/27/2011Rule #2Buy1283 +55
7/6/2011Rule #4Sell Short1338 +7
7/13/2011Rule #2Buy1331 -12
7/13/2011Rule #5Cash1319  
7/19/2011Rule #2Buy1319 +19
7/25/2011Rule #4Sell Short1338 +189
8/11/2011Rule #2Buy1149 +44
8/16/2011Rule #4Sell Short1193 +47
8/23/2011Rule #2Buy1146 +51
8/29/2011Rule #4Sell Short1197 -5
8/30/2011Rule #3Buy1202 +5
9/01/2011Rule #4Sell Short1207 +12
9/07/2011Rule #2Buy1195 -45
9/09/2011Rule #5Cash1150  
9/13/2011Rule #2Buy1172 +21
9/20/2011Rule #4Sell Short1203 +58
9/26/2011Rule #2Buy1145 +24
9/28/2011Rule #4Sell Short1169 +25
10/05/2011Rule #2Buy1143 +51
10/13/2011Rule #4Sell Short1194 -14
10/18/2011Rule #5Cash1208  
10/25/2011Rule #5Sell Short1237 -48
10/27/2011Rule #5Cash1285  
10/31/2011Rule #5Sell Short1269 +19
11/03/2011Rule #2Buy1250 -5
11/07/2011Rule #5Sell Short1245 +7
11/10/2011Rule #5Cash1238  
11/22/2011Rule #2Buy1188 -17
11/23/2011Rule #1Sell Short1171 +1
11/23/2011Rule #2Buy1170 +87
12/06/2011Rule #4Sell Short1257+16
12/13/2011Rule #5Cash1241 
12/15/2011Rule #2Buy1219+15
12/21/2011Rule #5Cash1234 
12/28/2011Rule #4Sell Short1253 
Total:+576
(+43.7%)

Adding a Stop-Loss to the system may substantially reduce losses and, in some cases, even double the summary profit.

Disclaimer: The chart example is intended for educational purposes only and does not constitute trading advice or make or imply any market trend prediction.

Trading SPX


On 2011-12-16, By MarketVolume.com Team

+43% on the S&P 500 in 7 months

This week's SBV chart example is based on the 60-day SBV(20) S&P 500 chart and is a continuation of the S&P 500 chart example that was published on December 9, 2011.

Chart 1. Relationship between the SBV Oscillator and
index reversal points. S&P 500 index. 60-day view. 1 bar = 60 min. SBV(20)

SP 500 Technical Analysis - December 2011

Detailed system description with explanation of used rules could be found in our "SBV Trading System" tutorial.

Table 1: Trades based on the 5-rule system.
TimeMotivationSignalIndexProfit
(points)
5/23/2011Rule #4Sell Short1318 +3
5/25/2011Rule #2Buy13150
6/01/2011Rule #4Sell Short1315+23
6/09/2011Rule #2Buy1292-18
6/10/2011Rule #1Sell Short1274 +1
6/13/2011Rule #2Buy1275 -9
6/15/2011Rule #1Sell Short1266 -6
6/16/2011Rule #2Buy1272 +3
6/17/2011Rule #1Sell Short1275-2
6/20/2011Rule #2Buy1277 -10
6/23/2011Rule #4Sell Short1267 -16
6/27/2011Rule #2Buy1283 +55
7/6/2011Rule #4Sell Short1338 +7
7/13/2011Rule #2Buy1331 -12
7/13/2011Rule #5Cash1319  
7/19/2011Rule #2Buy1319 +19
7/25/2011Rule #4Sell Short1338 +189
8/11/2011Rule #2Buy1149 +44
8/16/2011Rule #4Sell Short1193 +47
8/23/2011Rule #2Buy1146 +51
8/29/2011Rule #4Sell Short1197 -5
8/30/2011Rule #3Buy1202 +5
9/01/2011Rule #4Sell Short1207 +12
9/07/2011Rule #2Buy1195 -45
9/09/2011Rule #5Cash1150  
9/13/2011Rule #2Buy1172 +21
9/20/2011Rule #4Sell Short1203 +58
9/26/2011Rule #2Buy1145 +24
9/28/2011Rule #4Sell Short1169 +25
10/05/2011Rule #2Buy1143 +51
10/13/2011Rule #4Sell Short1194 -14
10/18/2011Rule #5Cash1208  
10/25/2011Rule #5Sell Short1237 -48
10/27/2011Rule #5Cash1285  
10/31/2011Rule #5Sell Short1269 +19
11/03/2011Rule #2Buy1250 -5
11/07/2011Rule #5Sell Short1245 +7
11/10/2011Rule #5Cash1238  
11/22/2011Rule #2Buy1188 -17
11/23/2011Rule #1Sell Short1171 +1
11/23/2011Rule #2Buy1170 +87
12/06/2011Rule #4Sell Short1257+16
12/13/2011Rule #5Cash1241 
12/15/2011Rule #2Buy1219 
Total:+561
(+42.6%)

Adding a Stop-Loss to the system may substantially reduce losses and, in some cases, even double the summary profit.

Disclaimer: The chart example is intended for educational purposes only and does not constitute trading advice or make or imply any market trend prediction.

SPX Simple System


On 2011-12-09, By MarketVolume.com Team

+41% on the S&P 500

This week's SBV chart example is based on the 60-day SBV(20) S&P 500 chart and is a continuation of the S&P 500 chart example that was published on October 21, 2011 and on August 5, 2011.

Chart 1. Relationship between the SBV Oscillator and
index reversal points. S&P 500 index. 60-day view. 1 bar = 60 min. SBV(20)

SP 500 December 2011

Detailed system description with explanation of used rules could be found in our "SBV Trading System" tutorial.

Table 1: Trades based on the 5-rule system.
TimeMotivationSignalIndexProfit
(points)
5/23/2011Rule #4Sell Short1318 +3
5/25/2011Rule #2Buy13150
6/01/2011Rule #4Sell Short1315+23
6/09/2011Rule #2Buy1292-18
6/10/2011Rule #1Sell Short1274 +1
6/13/2011Rule #2Buy1275 -9
6/15/2011Rule #1Sell Short1266 -6
6/16/2011Rule #2Buy1272 +3
6/17/2011Rule #1Sell Short1275-2
6/20/2011Rule #2Buy1277 -10
6/23/2011Rule #4Sell Short1267 -16
6/27/2011Rule #2Buy1283 +55
7/6/2011Rule #4Sell Short1338 +7
7/13/2011Rule #2Buy1331 -12
7/13/2011Rule #5Cash1319  
7/19/2011Rule #2Buy1319 +19
7/25/2011Rule #4Sell Short1338 +189
8/11/2011Rule #2Buy1149 +44
8/16/2011Rule #4Sell Short1193 +47
8/23/2011Rule #2Buy1146 +51
8/29/2011Rule #4Sell Short1197 -5
8/30/2011Rule #3Buy1202 +5
9/01/2011Rule #4Sell Short1207 +12
9/07/2011Rule #2Buy1195 -45
9/09/2011Rule #5Cash1150  
9/13/2011Rule #2Buy1172 +21
9/20/2011Rule #4Sell Short1203 +58
9/26/2011Rule #2Buy1145 +24
9/28/2011Rule #4Sell Short1169 +25
10/05/2011Rule #2Buy1143 +51
10/13/2011Rule #4Sell Short1194 -14
10/18/2011Rule #5Cash1208  
10/25/2011Rule #5Sell Short1237 -48
10/27/2011Rule #5Cash1285  
10/31/2011Rule #5Sell Short1269 +19
11/03/2011Rule #2Buy1250 -5
11/07/2011Rule #5Sell Short1245 +7
11/10/2011Rule #5Cash1238  
11/22/2011Rule #2Buy1188 -17
11/23/2011Rule #1Sell Short1171 +1
11/23/2011Rule #2Buy1170 +87
12/06/2011Rule #4Sell Short1257 
Total:+545
(+41%)

Adding a Stop-Loss to the system may substantially reduce losses and, in some cases, even double the summary profit.

Disclaimer: The chart example is intended for educational purposes only and does not constitute trading advice or make or imply any market trend prediction.

SPX Simple Trading System


On 2011-12-02, By MarketVolume.com Team

+40% on the S&P 500 in 6 months

This week's SBV chart example is based on the 60-day SBV(20) S&P 500 chart and is a continuation of the S&P 500 chart example that was published on October 21, 2011 and on August 5, 2011.

Chart 1. Relationship between the SBV Oscillator and
index reversal points. S&P 500 index. 60-day view. 1 bar = 60 min. SBV(20)

SP 500 Chart Trading October 2011

In our trading example, we applied the following simple system which is based on our SBV indicator:

  1.  Once the SBV indicator has fallen below a negative signal level (the indicator will now show red), we will enter a short position(if we are not already short);
  2.  Once the SBV indicator has advanced above a negative signal level (after having been below that level), we will enter a long position(the indicator still shows red);
  3. Once the SBV indicator has rallied above a positive signal level (the indicator will now show green), we will enter a long position(if we are not already long);
  4.  Once the SBV indicator has fallen below a positive signal level (after having been above that level), we will enter a short position (the indicator still shows green);
  5.  Additional Stop Loss Rule- If the SBV had dropped into negative territory and has begun to rise without having hit the signal line, close the short position when the SBV is back in positive territory, and stay in cash until a new signal appears.

    Do the opposite for a long position: if the SBV had moved into positive territory and has begun to decline without having hit the positive signal line, close the long position when the SBV is back in negative territory, and stay in cash until a new signal appears.

Detailed system description with explanation of used rules could be found in our "SBV Trading System" tutorial.

Table 1: Trades based on the 5-rule system.
TimeMotivationSignalIndexProfit
(points)
5/23/2011Rule #4Sell Short1318 +3
5/25/2011Rule #2Buy13150
6/01/2011Rule #4Sell Short1315+23
6/09/2011Rule #2Buy1292-18
6/10/2011Rule #1Sell Short1274 +1
6/13/2011Rule #2Buy1275 -9
6/15/2011Rule #1Sell Short1266 -6
6/16/2011Rule #2Buy1272 +3
6/17/2011Rule #1Sell Short1275-2
6/20/2011Rule #2Buy1277 -10
6/23/2011Rule #4Sell Short1267 -16
6/27/2011Rule #2Buy1283 +55
7/6/2011Rule #4Sell Short1338 +7
7/13/2011Rule #2Buy1331 -12
7/13/2011Rule #5Cash1319  
7/19/2011Rule #2Buy1319 +19
7/25/2011Rule #4Sell Short1338 +189
8/11/2011Rule #2Buy1149 +44
8/16/2011Rule #4Sell Short1193 +47
8/23/2011Rule #2Buy1146 +51
8/29/2011Rule #4Sell Short1197 -5
8/30/2011Rule #3Buy1202 +5
9/01/2011Rule #4Sell Short1207 +12
9/07/2011Rule #2Buy1195 -45
9/09/2011Rule #5Cash1150  
9/13/2011Rule #2Buy1172 +21
9/20/2011Rule #4Sell Short1203 +58
9/26/2011Rule #2Buy1145 +24
9/28/2011Rule #4Sell Short1169 +25
10/05/2011Rule #2Buy1143 +51
10/13/2011Rule #4Sell Short1194 -14
10/18/2011Rule #5Cash1208  
10/25/2011Rule #5Sell Short1237 -48
10/27/2011Rule #5Cash1285  
10/31/2011Rule #5Sell Short1269 +19
11/03/2011Rule #2Buy1250 -5
11/07/2011Rule #5Sell Short1245 +7
11/10/2011Rule #5Cash1238  
11/22/2011Rule #2Buy1188 -17
11/23/2011Rule #1Sell Shor1171 +1
11/23/2011Rule #2Buy1170 +74
Total:+532
(+40%)

Adding a Stop-Loss to the system may substantially reduce losses and, in some cases, even double the summary profit.

Disclaimer: The chart example is intended for educational purposes only and does not constitute trading advice or make or imply any market trend prediction.

Nasdaq Trading


On 2011-11-25, By MarketVolume.com Team

+23% on the NASDAQ 100 index

This week's SBV chart example is based on the 30-day SBV(20) Nasdaq 100 chart

Chart 1. Relationship between the SBV Oscillator and
index reversal points. Nasdaq 100 index. 30-day view. 1 bar = 30 min. SBV(20)

Nasdaq 100 index analysis in November 2011

In our trading example, we applied the following simple system which is based on our SBV indicator:

  1. Once the SBV indicator has fallen below a negative signal level (the indicator will now show red), we will enter ashort position(if we are not already short);
  2. Once the SBV indicator has advanced above a negative signal level (after having been below that level), we will enter along position(the indicator still shows red);
  3. Once the SBV indicator has rallied above a positive signal level (the indicator will now show green), we will enter along position(if we are not already long);
  4. Once the SBV indicator has fallen below a positive signal level (after having been above that level), we will enter ashort position(the indicator still shows green);
  5. Additional Stop Loss Rule- If the SBV had dropped into negative territory and has begun to rise without having hit the signal line, close the short position when the SBV is back in positive territory, and stay in cash until a new signal appears.

    Do the opposite for a long position: if the SBV had moved into positive territory and has begun to decline without having hit the positive signal line, close the long position when the SBV is back in negative territory, and stay in cash until a new signal appears.

Detailed system description with explanation of used rules could be found in our "SBV Trading System" tutorial.

Table 1: Trades based on the 5-rule system.
TimeMotivationSignalIndexProfit
(points)
10/17/2011Rule #4Sell Short2346 +3
10/18/2011Rule #2Buy2343+12
10/19/2011Rule #4Sell Short2355+5
10/19/2011Rule #3Buy2350-3
10/19/2011Rule #4Sell Short2347 +11
10/21/2011Rule #2Buy2336 +49
10/24/2011Rule #4Sell Short2385 +19
10/25/2011Rule #3Buy2366 -2
10/25/2011Rule #4Sell Short2364+26
10/26/2011Rule #2Buy2338 +57
10/28/2011Rule #4Sell Short2339 +75
11/02/2011Rule #2Buy2320 +43
11/07/2011Rule #4Sell Short2336 +13
11/07/2011Rule #5Cash2350  
11/09/2011Rule #4Sell Short2343 +1
11/11/2011Rule #2Buy2342 +10
11/14/2011Rule #4Sell Short2352 +11
11/15/2011Rule #2Buy2341 +18
11/16/2011Rule #4Sell Short2359 +139
11/21/2011Rule #2Buy2220 -4
11/22/2011Rule #4Sell Short2216 +66
Total:+549
(+23.4%)

Adding a Stop-Loss to the system may substantially reduce losses and, in some cases, even double the summary profit.

Disclaimer: The chart example is intended for educational purposes only and does not constitute trading advice or make or imply any market trend prediction.

Nasdaq


On 2011-11-18, By MarketVolume.com Team

+19% on the NASDAQ 100 index in a month

This week's SBV chart example is based on the 30-day SBV(20) Nasdaq 100 chart

Chart 1. Relationship between the SBV Oscillator and
index reversal points. Nasdaq 100 index. 30-day view. 1 bar = 30 min. SBV(20)

Nasdaq 100 index analysis in November 2011

In our trading example, we applied the following simple system which is based on our SBV indicator:

  1. Once the SBV indicator has fallen below a negative signal level (the indicator will now show red), we will enter ashort position(if we are not already short);
  2. Once the SBV indicator has advanced above a negative signal level (after having been below that level), we will enter along position(the indicator still shows red);
  3. Once the SBV indicator has rallied above a positive signal level (the indicator will now show green), we will enter along position(if we are not already long);
  4. Once the SBV indicator has fallen below a positive signal level (after having been above that level), we will enter ashort position(the indicator still shows green);
  5. Additional Stop Loss Rule- If the SBV had dropped into negative territory and has begun to rise without having hit the signal line, close the short position when the SBV is back in positive territory, and stay in cash until a new signal appears.

    Do the opposite for a long position: if the SBV had moved into positive territory and has begun to decline without having hit the positive signal line, close the long position when the SBV is back in negative territory, and stay in cash until a new signal appears.

Detailed system description with explanation of used rules could be found in our "SBV Trading System" tutorial.

Table 1: Trades based on the 5-rule system.
TimeMotivationSignalIndexProfit
(points)
10/17/2011Rule #4Sell Short2346 +3
10/18/2011Rule #2Buy2343+12
10/19/2011Rule #4Sell Short2355+5
10/19/2011Rule #3Buy2350-3
10/19/2011Rule #4Sell Short2347 +11
10/21/2011Rule #2Buy2336 +49
10/24/2011Rule #4Sell Short2385 +19
10/25/2011Rule #3Buy2366 -2
10/25/2011Rule #4Sell Short2364+26
10/26/2011Rule #2Buy2338 +57
10/28/2011Rule #4Sell Short2339 +75
11/02/2011Rule #2Buy2320 +43
11/07/2011Rule #4Sell Short2336 +13
11/07/2011Rule #5Cash2350  
11/09/2011Rule #4Sell Short2343 +1
11/11/2011Rule #2Buy2342 +10
11/14/2011Rule #4Sell Short2352 +11
11/15/2011Rule #2Buy2341 +18
11/16/2011Rule #4Sell Short2359 +106
Total:+454
(+19.4%)

Adding a Stop-Loss to the system may substantially reduce losses and, in some cases, even double the summary profit.

Disclaimer: The chart example is intended for educational purposes only and does not constitute trading advice or make or imply any market trend prediction.


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2/4/2012 - SV2