DIBS is not just Forex – $SPX Prints Plenty of DIBS Signals Too

The DIBS is not just for Forex trading, you can apply it to any trading instrument that you think has good liquidity and interest from speculators that can produce solid breakouts.

The example of the chart below shows the S&P 500 (using the CFDs in the chart example). Given that the S&P futures pretty much trade around the clock and that the index’s price action shows a reasonably high correlation with the EURUSD, it’s not entirely surprsing that the DIBS can produce signals that trigger for some solid breakouts on the S&P’s.

The chart below shows last week’s action from Tuesday to Friday on an M30 time frame, and you can see that some of the signals coincide quite nicely with the DIBS signals that appeared on EURUSD (check out this week’s chart book).

Friday’s long signals pretty much ran side by side with the longs on EURUSD/GBPUSD as news of potential Greek debt restructuring talks was hitting the tape.

 

20-06-2011_15-44-20_spx_example

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