SIDEBAR: Portrait of a cycle
Combining volume indicators, my new high and new low indicators and the advance/decline line (ADL) helps me to define cycles in the Dow Jones Industrial Average (DJIA) or other broad indices such as the New York Stock Exchange Index or Standard & Poor's 500 stock index.
The charts in Figures 1-4 show how these three sets of indicators detect a DJIA cycle. Figure 1 is an overview and shows five complete DJIA cycles delimited by my new low indicator (NL), the single best indicator I have found for defining cycles. Figures 2-4 are close-ups of the last cycle in Figure 1.