Volume Analysis


Volume-based technical analysis of all Nasdaq 100, S&P 500 and DJI indexes components is a very powerful tool and is a prerequisite for anyone who wants to predict financial market movements and build a successful Mutual Fund and index trading systems based on the Nasdaq 100, S&P 500 and DJI indexes.

An index technical analyst doesn't generally look too much at income statements, balance sheets, company policies, or many other fundamentals about the company. And a REAL index technical analyst doesn't rely only on price analysis, but relies heavily on volatility and volume analysis as it is volume which drives price movements. This type of analysis (combination of price, volume and volatility) usually done in the form of a chart, however there is a possibility to build mathematical algorithms which would perform this analysis in relation to a stock, future, index, or a sector. It is flexible enough to work on anything that is traded in the financial markets.

Our index trading system is not 100 percent automatical as it does have a level of subjectivity. The basic analysis technology behind our index trading system is MarketVolume's proprietary indicators and its system of volume technical analysis. MarketVolume's charting technology allows our analysts to make informed, but still somewhat subjective, decisions as to where the market is most likely to go in the mid and long-term, and to generate a signal based on the results of that analysis. Also keep in mind that our index system has incorporated other (beside volume) forms of technical analysis.

Every index trader and index technical analyst understand the importance of index charts and index indicators, but that is not the whole picture. What sets our system, analysts and traders apart from the 'traditional' technical analyst is that we do not solely relay on price data and price movement alone. A good term for the type of technical analysis behind our Index Trading System is Fundamental Volume Analysis, in which we analyze the cause that generate the price movements in ETFs that track indexes, while traditional technical analysis generally only focuses on price based technical indicators.

RISK STATEMENT: The trading of stocks, futures, commodities, index futures or any other securities has potential rewards, and it also has potential risks involved. Trading may not be suitable for all users of this Website. Analyst research available through this Website does not constitute a recommendation or a solicitation any particular investor should purchase or sell any particular securities. Past performance is not necessarily an indication of future performance. You absolutely must make your own decisions before acting on any information obtained from this Website. More...
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