V.11:7 (273-276): The Real Advance Decline Line by Frank Barbera Jr., C.M.T.

V.11:7 (273-276): The Real Advance Decline Line by Frank Barbera Jr., C.M.T.
Item# \V11\C07\THEREAL.PDF
$3.95
Availability: In Stock

Product Description

The Real Advance Decline Line by Frank Barbera Jr., C.M.T.

Each day, stock market analysts calculate the number of stocks closing up versus the number of stocks closing down, resulting in the advance-decline line. This simple arithmetic exercise can help confirm the underlying trend or point to deteriorating market conditions. However, changes in the market have altered the perceptions of one analyst in particular on how to calculate the A-D line. Here's how former Financial News Network market analyst Frank Barbera now looks at the daily A-D line.

For many years, the daily advance-decline (A-D) line has been among the most widely quoted of market indicators . Many market analysts believe the daily A-D line provides one of the most accurate reflections of the market's near-term technical health. In its most common form, the indicator is constructed by taking the net difference of advances over declines for each day and then plotting a running total of these differences. The resulting cumulative flow line can be used as a yardstick by comparing it with the behavior of the market averages in order to determine whether the majority of stocks is fully participating in a given advance or decline.

Generally speaking, new highs in the market averages that are confirmed by new highs in the A-D line suggest a technically healthy market, while markets advancing to new highs without A-D line confirmation are considered to be more vulnerable to a significant decline. This form of divergence analysis can help discern market turning points, particularly market tops.




FOR THOSE ORDERING ARTICLES SEPARATELY:
*Note: $2.95-$5.95 Articles are in PDF format only. No hard copy of the article(s) will be delivered. During checkout, click the "Download Now" button to immediately receive your article(s) purchase. STOCKS & COMMODITIES magazine is delivered via mail. After paying for your subscription at store.traders.com users can view the S&C Digital Edition in the subscriber's section on Traders.com.




Take Control of Your Trading.
Professional Traders' Starter Kit
All these items shown below only $299.99!
  • 5-year subscription to Technical Analysis of STOCKS & COMMODITIES, The Traders' magazine. (Shipping outside the US is extra. Washington state addresses require sales tax based on your locale.)
  • 5 year access to S&C Archive
  • 5 year access to S&C Digital Edition
  • 5-year subscription to Traders.com Advantage.
  • 5-year subscription to Working Money.
  • Free book selection.
  • Click Here to Order