How to read charts the New York Stock Exchange Indicator?

The New York Stock Exchange (NYSE), the largest equities marketplace in the world, is home to about 1 companies worth more than $17 trillion in global market capitalization.

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:

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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