VMA + price movement

Discussion in 'Trading' started by jr07, Feb 13, 2010.

  1. jr07

    jr07

    Hi all

    I've been testing VMA recently for day trading using it as an entry signal when volume crosses surpasses it combined with a movement in price. Results have been 50/50.. which is dissapointing since I thought above average volume acompanying a price movement would be a pretty decent confirmation.

    The other problem I'm encountering is trade frequency since the "signal" triggers many times in a day for any given stock.

    Should it be used as a contrarian indicator? Wait til strong volume (above MA) pushes price and then enter in the opposite direction?

    Or should it be combined with something else? (I'm not a big fan on technical indicators for price..)
    J