using broad market indicators

Discussion in 'Technical Analysis' started by hanhao, Jul 14, 2007.

  1. hanhao


    using broad market indicators

    hi, how do i use broad market indicators?

    like these:
    UpDown Vol Ratio
    UpDown Vol spread( advance volume - decline volume)
    UpDown Vol money spread( aUpDown Vol spread* typical price)

    one thing i could think of is smoothing them up wth 13 EMA and look for divergences.

    another idea is that buy stocks which advance during a high broard market decline day. This might mean the stock is bullish on bad days and on good days it will fly!

    the indicator that interests me most is UpDown Vol money spread. it shows funds pushing stock up or down. but i got no idea how to use it

    well i really dont know. Please help =)
  2. don't waste your time.

    If the trend of the overall market is flat to even mildly higher search out and trade the market leadership stocks.

    money is made by sitting not thinking and over thinking... just my 2c
  3. hanhao


    analyzing broad market is a waste of time? there is no useful information to be obtained from analyzing broad market?
  4. no, over analyzing them is.

    pull up the chart on your monitor... stand up... back step six to eight paces... look at the chart... if the trend is sideways to mildly rising concentrate of buying the market leaders... if the trend is down go have fun (golf, swimming, boating, girls etc)
  5. There are dozens and dozens more market breadth info.

    Out of curiorsity, why did you only mention a few or only mention these particular ones?

    Regardless to which ones your using...

    You can easily answer your own questions by putting in the screen time via watching side by side with your favorite stocks you trade.

    If nothing stands out for you after a few months of studying them...

    They probably aren't going to be useful to you.

    However, you already know something assuming its via your own research after a few months of screen time of watching it...

    If that comment is via your own already know how to use it.

    However, if you made that comment after reading something someone else said and you haven't research to find out if such is true or not...

    Probably best to contact the person that said it or use ET search, Google search to find those using it.

    By the way, I use market breadth info and they are very useful in my trading but I don't use the ones you mentioned.

    Also, I don't trade stocks, I trade futures.

    (a.k.a. NihabaAshi) Japanese Candlestick term
  6. I use the TRIN for intra-day and end-of-day trading. A couple of things that might help:

    1. Using a 13 day ema in my experience is too long, try using 5 to 10 to highlight market cycles

    2. When calculating averages remember the TRIN is a ratio - 1 is netural, 2 and 0.5 are equivalent. You have to adjust for this using the Log function.

    3. Look for divergence patterns in the TRIN - market is down (close less than open) but TRIN shows buying
  7. I agree with the previous poster. Most of the time the tick, trin and ad just chug along with whatever the market is doing but occasionally there are divergences and these often signal a change coming up. When the market is selling off but trin is low and not going up somebody is doing a lot of buying somewhere. When market is making new highs or lows but ticks are not the market is probably getting ready to roll over. So they are worth watching imho, just dont expect too much.
  8. notouch


    I'll bet for every time a divergence between the SP500 and trin leads to a reversal in the SP500 there's a time when it doesn't. Price and volume is the only information you need.
  9. someone gets it:)
  10. And you can mostly disregard volume.
    #10     Jul 15, 2007