Emini S&P 500, Russell 2000, DOW and Nasdaq 100 Futures Charts.

We use a simple trading system based on our SBV indicator:

(A) For entering short positions:

1. Once the SBV indicator has advanced above plus 66% (the SBV indicator will show red), wait for it to decline below that level, then enter a short position;
2. Take profits once the price / index has declined to your pre-determined profit target level OR when the SBV indicator drops below minus 66% (the SBV indicator will show green), whichever occurs first;
3. Take losses if the price / index rises above your pre-defined stop loss level.

(B) For entering long positions:

1. Once the SBV indicator has dropped below minus 66% (the SBV indicator will show green), wait for it to rally above that level, then enter a long position;
2. Take profits once the price / index has risen to your pre-determined profit target level OR when the SBV indicator exceeds plus 66% (the SBV indicator will show red), whichever occurs first;
3. Take losses if the price / index declines below your pre-defined stop loss level.

The 66% level for the SBV indicator was determined in relation to the prevailing market conditions at the time the examples above were selected.

In order to establish the optimal critical levels for the SBV indicator, a trader should

1. Set a chart setting that best fit his trading style and risk tolerance.
2. To verify scroll chart back in history (by using arrows button at the right and left bottom corners of the chart) and define the level of SBV indicator suitable for trading.

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