The setups I include on this blog are used in conjunction with the 3/10macd and the criteria I ascribe to it as a way to alert me to an existing condition of price. The key concept to take away from this blog is that I try to anticipate what will happen on the higher time frame by using a faster time frame to trigger the trade setup. I do not trade a "system" I use two indicators to clue me in to price conditions. Please read the Disclaimer located in the sidebar of this site. I can be contacted via email at
I am always open to questions, comments, or suggestions on how to improve this blog.

Friday, November 18, 2011

Adv/Decl line

Worth watching intraday is the S&P500 Advance-Decline issues differential; whether it is positive or negative on the day and its interplay with the zero-line.
Just some snapshots here to show how it behaves, starting with today and going back to Monday:

Stayed positive most of the day and supported by the zero-line

Negative all day and extremely negative the later part of the day. When this extreme it works well to fade extreme NYSE TICK readings (around +800) for scalp trades.

Bullish breakout

 Interesting to see volume spikes that turn the market.  Here the A/D line showed a false breakout of the zero-line.
again, this is given even greater perspective using the NYSE TICK confirming with divergences or negative vs. positive A/D breadth

and here's Monday.  This week saw a positive (bullish) A/D line on only 2 days, today being one of them.

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