Here is a breadth driven trading model based on S&P500's 20 days new low market breadth data. It is not something complex and everyone can follow easily. It performs very ...
Here is the trading system I presented in the Futures Magazine article, Using market breadth in trading systems, in the January 2008 issue.
System Setup
1. Emini S&P regular trading hours (RTH) ...
Review of Forecast for May 25, 2015
The expectation of a modest decline was correct. 1.5% decline was registered but did not drop further thanks to rumors were spread about Greece ...
Review of Forecast for Nov 21, 2016
Thanksgiving week led to updrift all week. Volatility spike did not materialized. Slingshot move not enough time to unfold due to shorten trading hours. ...
I am going to present the first example trading model in this series that exploits the characteristics of the NYSE Tick Index. Most people focus on the intraday behaviour of ...
Review of Forecast for Jul 4, 2016
Sharp pullback at the beginning of the week as forecasted. Since then rally all the way up and capped below the 1.5% upside as ...
Review of Forecast for Aug 22, 2016
No 1% move in either direction led to range bounded actions, so 2% breakout play not triggered. Slingshot move materialized. Short term breadth sell ...
Review of Forecast for Jul 25, 2016
No 1% move in either direction led to range bounded actions, so 2% breakout play not triggered. Breadth sell setups not confirmed yet. The ...
Review of Forecast for Jun 20, 2016
S&P custom breadth downside breakout capped the upside push and led to total collapse after Brexit. Intraday volatility spikes as expected. 2% down registered. ...
An interesting usage of advance / decline issues is to identify the market extremes. Here is one setup that has emerged as one of the best short term bottom picking ...
Market Internals 2012-11-19
The current snapshot of S&P 500 3-Day Advance Issues, Tick16 Short Term + Long Term as of 2012 Nov 19 close.
Reading
1. Long Term Tick16 (yellow line) rejected neutral zone and stuck in bearish zone
2. Short Term Tick16 (red line) in compression for more than a month now
3. 3 Days Advance Issues (green line) popped back up to overbought zone from divergence bottom
Inference
a. #1 still in trend sell mode
b. #2 points to breakout in the making
c. #3 in the context of #1 points to another push down in the making
d. if #2 resolves to the upside, #1 will follow and create a very powerful upside breakout
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