"Market Breadth" Posts
Forex Market Breadth Analysis: Fractal Behaviour In Pair Correlations
By Lawrence
Forex pairs, especially the majors, do not usually move in a particular direction alone while the other ones doing that in the opposite direction. They often move in near synchronization. I am going to discuss the characteristics of this behaviour and how to exploit this relationship in short term trading to your advantage. (member-only content […]
Market Internals 2013-07-21
By Lawrence
Monthly update on market internals. The current snapshot of S&P 500 3-Day Advance Issues, Tick16 Short Term + Long Term as of 2013 July 19 close. Reading 1. Long Term Tick16 (yellow line) well below neutral zone going sideway 2. Short Term Tick16 (red line) drifting in overbought area 3. 3-Day Advance issues (green […]
Market Internals 2013-06-20
By Lawrence
Monthly update on market internals. The current snapshot of S&P 500 3-Day Advance Issues, Tick16 Short Term + Long Term as of 2013 Jun 20 close. Reading 1. Long Term Tick16 (yellow line) well above neutral zone heading down 2. Short Term Tick16 (red line) moving down towards oversold area 3. 3-Day Advance Issues (green […]
Trading With Tick Index: Basic Tick Divergence
By Lawrence
Tick Divergence is a very useful setup for identifying short term tops and bottoms in Emini intraday. It works very well across many different market environments making it one of the must know trading techniques. Tick divergence provides a distinct edge that no other short term indicators can match. Example Chart Following is a chart […]
Market Internals 2013-05-19
By Lawrence
My monthly update on market internals. The current snapshot of S&P 500 3-Day Advance Issues, Tick16 Short Term + Long Term as of 2013 May 17 close. Reading 1. Long Term Tick16 (yellow line) moving back up to right below neutral zone. 2. Short Term Tick16 (red line) moving back up to neutral zone. 3. […]
Market Breadth Primer: Advance / Decline Spike Low
By Lawrence
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 signals since year 2000. Following chart marks the points where the signal occurred. The most powerful thing with this setup is that if the market […]
Market Breadth Primer: CHADTP Past and Present
By Lawrence
This article is going to show you an example on the change in characteristics of the Advance / Decline Issues affecting trading models based on the breadth data. The example system I am going to use is called Conner Hayward Advance Decline Trading Pattern (CHADTP). It is originally mentioned in the book Investment Secrets of […]
Market Internals 2013-04-19
By Lawrence
My monthly update on market internals. The current snapshot of S&P 500 3-Day Advance Issues, Tick16 Short Term + Long Term as of 2013 April 19 close. Reading 1. Long Term Tick16 (yellow line) below neutral zone. 2. Short Term Tick16 (red line) moved into oversold zone. 3. 3 Days Advance Issues (green line) […]
Market Breadth Primer: Advance / Decline Issues Past and Present
By Lawrence
Market breadth analysis is a lesser known analysis tool comparing to price patterns or technical indicators. As there are not many technical papers and books written on the subject, most people would have no choice but to refer to the older information on how to utilize the market breadth statistics. The problem with the classic […]
Market Internals 2013-08-16
Monthly update on market internals. The current snapshot of S&P 500 3-Day Advance Issues, Tick16 Short Term + Long Term as of 2013 August 16 close. Reading 1. Long Term Tick16 (yellow line) below neutral zone going sideway 2. Short Term Tick16 (red line) drifting around neutral zone 3. 3-Day Advance issues (green line) […]