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Strategies & Market Trends : MDA - Market Direction Analysis
SPY 670.92+0.1%Nov 7 4:00 PM EST

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To: Les H who wrote (63745)12/7/2000 4:19:07 PM
From: Doug  Read Replies (1) of 99985
 
Les: I have been using the NYSE and NAZ A/D smoothed out with a 3day ema.

In the past, divergence on this line vrs the Index plot have been very good and indicated a BUY signal.

However since Oct, we had 3 occasion where the A/D line moved to an uptrend and generated a divergence. However on all 3 occasions the A/D line quickly reversed and followed the index trend down.

Since you do a lot of work on Market breadth, I would like to know your interpretations of the A/D divergence that occurred in Oct/Nov and Dec.

As a side note, do you know of a site that has a free service for a 3day ema A/D daily chart.

Thx.
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