Advance Decline Tick volume as an indicator

Discussion in 'Technical Analysis' started by coolraz, Nov 1, 2008.

  1. coolraz


    Hello to all traders. I was wondering if anyone has every used or uses the following indicator.

    it has multiple variations (AD line, money flow etc), I am more looking at this specific one

    AD volume = volume of shares traded as upticks - volume of shares traded as downticks.

    Looking at charts of this, I have found that if price moves in a direction and is not followed by AD volume, it will very often reverse so this could be useful for scalping.

    However, I b/c my trading style is more trend-folllowing, I wanted to know if anyone has experience in using it for that purpose (i.e identifying when a trend is ending).

    In the picture below, the organe line is price, the blue line is the AD volume