An example of how the Advance/Decline and its interplay with its zero-line can be used as a reference point and potentially good risk:reward entry areas when used in conjunction with price support/resistance and the TICK.
Here we have two basic support levels (horizontal dash lines) along with vertical dash lines to highlight when the A/D-line pulls back to zero, whether from above or below. Price often seems to bounce (or fade) from this zero-line, until it doesn't, where it then breaks out. For example, we had a few bounces off of the zero-line coming into today, the fourth test flagged and broke down later finding support (price support as well) at the -200 line (mildly bearish) on a bullish divergence on the lows. Later in the day there were two fades off of the zero-line where price pulled back but didn't sell off, only to later break above zero on the third attempt.
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 firstname.lastname@example.org
I am always open to questions, comments, or suggestions on how to improve this blog.