using broad market indicators

[hanhao]

using broad market indicators

hi, how do i use broad market indicators?

like these:
UpDown Vol Ratio
UpDown Vol spread( advance volume - decline volume)
UpDown Vol money spread( aUpDown Vol spread* typical price)
TRIN
ADSpread
ADRatio

one thing i could think of is smoothing them up wth 13 EMA and look for divergences.

another idea is that buy stocks which advance during a high broard market decline day. This might mean the stock is bullish on bad days and on good days it will fly!

the indicator that interests me most is UpDown Vol money spread. it shows funds pushing stock up or down. but i got no idea how to use it

well i really dont know. Please help =)

 

[barrytaylor]

I use the TRIN for intra-day and end-of-day trading. A couple of things that might help:

1. Using a 13 day ema in my experience is too long, try using 5 to 10 to highlight market cycles

2. When calculating averages remember the TRIN is a ratio - 1 is netural, 2 and 0.5 are equivalent. You have to adjust for this using the Log function.

3. Look for divergence patterns in the TRIN - market is down (close less than open) but TRIN shows buying

If you want to know more I have a page all about the TRIN on my site.

BT
www.Emini-Watch.com

 

[Iwy09tr]

Hello,
what do you think of using and representing broad indicators like it's done in this AmpleSight. Look what they've done: http://www.amplesight.com/breadth_beacons.htm
Does the idea worth so pompous introduction?

Thanks
Ian