Short-Term Volume And Price Oscillator by Sylvain Vervoort
Using the turning points in the oscillator gives profitable
trades. Come look.
Before telling you about the construction and application
of the short-term volume and price oscillator
(SVAPO) I am using, letís talk about some basics
using an indicator as a buy & sell trigger. The indicator must have clear reversal points and be as fast as
possible on the entry side. The faster you can get in at a price
reversal, the tighter your initial stop-loss can be. This will save
you a lot of money on those trades that move the wrong way.
A trailing stop-loss, which is a stop-loss order that follows the
prevailing price trend, is best set in relation to your investment
horizon. Are you a swing trader trying to catch all the shorter
profitable price moves, or a medium- to long-term trader trying
to stay in the trade to capture the extended bigger price moves?
OSCILLATOR AND PRICE RELATION
There is no ideal indicator, which is why you have to protect
your investment with a stop order. Using an oscillator as the
only reference to enter or exit a trade is not a good idea. The
oscillator should instead be used as an alert for having a closer
look at the chart and only then making a decision, taking into
consideration all possible technical analysis tools.