The Better Momentum indicator has just been updated with the addition of Exhaustion Volume signals. As a result I received an email from Mike asking for an example or two of how to use these signals. I hope this Emini day trade example helps. It's taken from Tuesday's trade.
The Short trade setup was influenced by Exhaustion buying volume up into 1108 – after which the Emini couldn't push further and started to drop. I Shorted at 1106 and took profits at 1103. The exit didn't hit my profit target but I got out because Exhaustion selling volume came in at the 1103 level and it coincided with Professional buying and cyclical support on the higher time frames.
I hope the video helps explain the new momentum indicator signals. It's just over 5 minutes, so shorter than previous videos.
If you're reading this article via email or RSS reader, then follow this link to view the momentum indicator video on the website.
Momentum Indicator: Exhaustion Volume Signals – 1 December 2009 (5:46)
Good luck with your Emini day trading.