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Trading System based on the "advances" and "declines" concept -
A/D Historical Ratios Calculator
The A/D issues and A/D volume ratios are among the most
popular sentiment indicators. They are used by technical analysts to anticipate
potential market reversal points. Extremely low A/D issues and A/D volume ratios
are indicative of an extremely bearish market sentiment, thus allowing market
observers to anticipate potential bullish market reversals. Conversely, highly
elevated readings of the A/D issues and A/D volume ratios may indicate an overly
bullish sentiment, often pointing to a potential downside reversal.
More...
Our research has uncovered incidences where the A/D issues and
A/D volume ratios were either critically elevated or extremely low. This data
can now be used to define index levels thought to be critical for an upcoming
trend reversal. A database has been established that allows traders to devise
their own trading strategies (Click
HERE to see an example of a mid-term trading system built on the premise of
critically low A/D issues and A/D volume ratios for the S&P 500 index).
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