We are always looking for high degrees of correlation between our indicators and our stock or index trades and even though the theory behind the Leibovit Volume Reversal (tm) - Volume precedes Price - should results in uniform trading results, there are always exceptions - and no trading tool, including my own is perfect. Yet, it has been the foundation of my success for nearly 40 years.
Here, we take a look at Tesla (TSLA) on both the daily and weekly Sequential chart. As a reminder, the Volume Reversal package includes the Sequential, Directional and 2-Day versions of the Volume Reversal. The Sequential posts all Positive and Negative VRs, the Directional filters out repetitive VRs and the 2-day signals an exit two days (two bars) following the VR.
The Leibovit Positive VR on May 24 accompanied by a rising 5/3/3 stochastic is the most recent and demonstrable example of the success of the VR. Just prior to that, however, we also saw a profitable use of the Leibovit Negative VR on May 15. In the video we flip to the weekly chart and also see how powerful the Volume Reversal tool became on a larger time frame. Clients choose the time frame, though I personally prefer the daily charts.
Watch the full video here.
