From the desk of top market timer, Mark Leibovit: SCO - The Proshares Ultra-Short (triple) ETF for Crude Oil was one of the trading recommendations recently posted at VRtrader.com and the accompanying video demonstrates how you have profited using my Volume Reversal (tm) indicator.
In the video I show both daily and weekly charts. In the daily chart, a Leibovit Positive Volume Reversal was formed on February 28 signaling a potential top in Crude Oil (index is inverse).
Another one was formed on March 8. We jumped in on March 3 as a rising 5/3/3/ stochastic confirmed upside momentum and we were able to purchase on a slight pullback.
Lucky for us, the March 8 rally unfolded and dramatically confirmed we were on the side of the trade. Followers of my trades at VRtrader.com know I tend to 'ring the register' as often as I can and rally into March 10 afforded us that opportunity.
Generally, a Volume Reversal (positive or negative) translates into momentum in the direction of the Volume Reversal for a couple of trading days - the reason we created the 2-Day version as part of the Volume Reversal package. Recall, there are three versions offered: the Sequential (shows all VRs), the Directional (filters out repetitive VRs and provides a stop) and the 2-Day which exits you two days following the VR (a stop is also provided).
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