Ask any carpenter or mechanic about the right tool for the job. The symbol is inconsequential IF it's of dubious value (in the timeframe/methodology) implied. Well Mark, why don't YOU explain to ME how "some" traders (infering you) are aided by the AD line (regardless of origin) to indeed put money in their pocket, particularly.......... on a "consistent" basis. I'm all eyes (and quite receptive to learning tuition-free).
Hi efficiency, First of all, I trade futures. Specifically, I trade something that does coincide with what's advancing/declining. Secondly, I have a rule that when someone announces to someone else so all can read that's it's better to concentrate only on the price movement of the trading instrument... I strongly disagree with that trading concept because it represents having tunnel vision and the trader will not have a healthy vision of the overall market price action. An overall market price action that often provides a wealth of information about the particular trading instrument that's being traded. Once again, our difference of opinion is strictly a difference in strategies or approach to the markets. With that said, most that's been at ET for a long time to see me post here for many years know one thing particular about me. If someone thinks something is not of value... I do not waste my time and energy trying to prove to that trader that something has value via revealing my market approach to him/her. However, if you think there's value there and truly want to explore how others are using something like that AD Line to help with their trading (as in me)... You need to step into my backyard sort'uv speak because nothing will be handed to you on a silver platter. I currently trade the Russell 2000 Emini ER2 futures and the AD Lines value is just as useful in helping with trading EMD, ES, NQ, YM, DAX, DIA, SPY, IWM and QQQQ. As for the above trading instruments I've mentioned, I've traded them at one time or another in the past profitably with the help of the price action info from the AD Line. Now continuing in my backyard...choose any of the above trading instruments...put it up on your monitors side by side with the AD Lines. Watch it for a few trading days in realtime price action and not via reviewing of hindsight charts by itself because learning from hingsight charts doesn't provide true feel of the price action. Next, get the software called Camtasia Studio at http://www.techsmith.com for recording any one of those trading days in which you were studying the AD Lines side by side with any of the above trading instruments for another session of consecutive trading days. As a reminder, if you truly want to learn...you need to come into my backyard. Next, pick any swing point (your choice) out of the price action on any particular trading day that you've recorded via Camtasia or any other type of screen recording software and then edit out that from your recordings and then email it to me (you can pm me to ask me for my email address). Another option is that you can just post your video file to something like Youtube and just email me the direct link to where you've uploaded your video file. In addition, make sure your recording shows the AD Line and any of the above trading instruments side by side on your monitor screen. No hindsight chart discussion at this point. This ensures you really are in my backyard. If you think I'm being ridiculous or that I've just made up something to be evasive about my approach of using the AD Line... I'm not and my prior Trading Hammers (revisited) thread here at ET is proof that I'm very serious about using Camtasia as a proper learning tool. http://www.elitetrader.com/vb/showthread.php?s=&threadid=52880 (Note: hindsight charts are useful as reference points only to live-recordings of the price action.) This is how I approach my own learning and I expect nothing less of someone wanting to learn something from me. After you've stepped in my backyard via the above route that I am very comfortable in hanging out in... I'll email you with specific details on how the AD Line can be useful in your trading of any of the above trading instruments in reference to your live recordings as specific examples. It will be very specific in how the AD Line helps with giving you a better understanding of the price action in any of the above trading instruments. Keep in mind the AD Line is just one trading tool I use out of several different trading tools. P.S. I have no affiliation with Youtube nor do I have any affiliations with Techsmith Camtasia and you can freely use it for 30 days. http://www.techsmith.com/download/camtasiatrial.asp Mark (a.k.a. NihabaAshi) Japanese Candlestick term
For someone that doesn't "waste time and energy", this is one of the lengthiest replies I've ever received. Don't construe that necessarily as a compliment. Well, I don't trade futures. I do however transact in the elements that make up the advance decline line. I wouldn't want to pry proprietary info on how YOU use the A/D. In fact, it's of little interest. Just attempting to make a point. If the OP or you want to use A/D (or anything else), nothing wrong with it. But mister market will reflect the relevance/applicibility and clearly help you keep score. I am remotely curious what you used in lieu of candlesticks prior to 1991. I'll go out on a limb and infer you feel candles have predictive powers. Perhaps with a dogi. But they're too few and far between. Silly as it sounds I still use a DOS Metastock for graphic inspiration and simple paper and penci computations. I do indeed use a A/D line. But transformed into an oscillator, NYSE rather than NASDAQ applied to a longer time horizon, and in conjuntion with High low data, also as an osciallator. So it has value. Just not in the context of the thread. More or less tells me when to lighten up, or deploy. A filter. I still transact in price and hopefully in accordance with a specialist agenda. "Better" might have been a poor choice of words, but what's skirted is we all transact in..............PRICE. The common denominator for all inputs and participants. Futures aside, each of those elements of the A/D results from the merchandising of paper. In essence, paper....................and price. With futures, add leverage, expiration, and stir. Attached, for no particular reason is the raw A/D for the NASDAQ for the last 1500 days, courtesy of my etch-a-sketch.
Actually, if you read any of my past posts... My prior post length is below the norm when talking about market approach to trading and it only took a few minutes to write. Besides, wasting time and energy comment I made was specific to discussing/revealing a method or market approach... Nothing to do with the length of messages in this thread. Anyways, you did ask to find out how I was USING it and I replied with specific details how to proceed. With that said, you may also want to read this recent commentary I made about Japanese Candlesticks to someone named marketsurfer... http://www.elitetrader.com/vb/showthread.php?s=&threadid=103936&perpage=5&pagenumber=14 Simply, don't make any assumptions about my use of Japanese Candlesticks. Just ask...I don't bite. To specifically answer your assumption... I strongly feel that JC all by itself do not have any predictive values. You should use them as confirmation tools for entry or exit into what you already know about the price action. As for Dojis...they appear too often but our difference of opinion may be due to the fact we trade different trading instruments. As for your commentary about price itself... I'm a price action only trader (no indicators) and completely agree with you about the common denominator (price itself). Therefore, the price action of my trading instrument and the price action of other trading instruments I follow is a great way to approach the markets (intermarket analysis) although I'm fully aware that others have a different route to make a buck. Thanks for the etch-a-sketch image. I use something similar for my long term trades although I'm mainly a day trader most of the trading year. On that note, since we obviously do use the AD Line (thanks for the clarification) and we trade different types of markets (I trade futures and exchange traded funds)... I guess we can get back on topic of the thread which others have already answered. Mark (a.k.a. NihabaAshi) Japanese Candlestick term
There is some weird market flow screen you can go to on IB. I dont remember how to get there. Give their support a call at (877) 442-2757