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SML - Stock Market Directory

DJT Trading

By: MarketVolume.com Team

Article Category: SML Index Trading

The first Dow Jones stock index (DJT), assembled in 1884 by Charles H. Dow, co-founder of Dow Jones & Company, was composed of nine railroads, including the New York Central and Union Pacific, and two non-rails, Pacific Mail Steamship and Western Union. That was the ancestor of today's transportation average.

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). In this example, the index is in a downward trend just after 12:00. The downward trend continues until the VMA has reached a peak and this sharp increase in the VMA signals that a bottom has been reached for the day and that professional investors are buying. Once the VMA has peaked, that signals the safest point in which to make a trading decision, as it is here that the index has confirmed a new upwards trend.

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 Dow Jones Transports (DJT) 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.