|
|
 |
Introduction into
Advance/Decline Analysis
(Indicators based on the "advances" and "declines" concept)
Description: Advance/decline indicators
and analysis to generate trading signals for index trading systems. technical
analysis of Breadth indicators.
Below you may see a few quotes from the "Introduction
into Advance Decline Analysis" article which is available in the
MarketVolume's tutorial of Advance/Decline technical analysis.
"...Many traders and investors have heard about
'advance and decline indicators' (AD indicators), but are held back by
the common misconception that these technical studies are available only
to professional traders working for large financial institutions or fund
companies....
...An ideal indicator would give you a clear, infallible signal every
time the market reaches a 'critical level' from where it would then
reverse. An ideal indicator could also be configured for short-, mid-,
or long-term trading, giving only signals relevant to the particular
timeframe you may wish to trade...
... Used and interpreted correctly, AD indicators are excellent tools
you can use to anticipate points at which the market becomes
'overbought' or 'oversold' (for a given timeframe: short-, mid-, or
long-term). Once a market has reached an overbought or oversold state,
it is more likely to reverse its trend...
...In our small tutorial, we provide examples illustrating the use of
the AD indicators. We will cover some specific market situations to help
you better understand the underlying mechanisms of the AD indicator,
plus we show you, how to analyze the indicators and how to make trading
decisions based on them....
...our tutorial may seem a little bit complicated at first
glance, but we believe we have kept it simple enough even for beginning traders.
We tried not to delve too deeply into technical issues..."
A. v. S.
V. K.
Copyright 2004 Highlight Investments Group.
All rights reserved. This material may not be published,
broadcast, rewritten, or redistributed.
|
|
|
Prev
