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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: John Madarasz who wrote (62837)	11/20/2000 9:01:45 AM
From: James F. Hopkins	Read Replies (2) \| Respond to of 99985

John; Know of anyone who ever heard of a "Diffusion Index" ? I sure would like to know were I could chart one. It's a sort of an A/D type index and older traders used it a lot but it seems to have disappeared from the public eye It's so good I'm sure it's still used "in house" by big trading firms but they are not going to share it with the public. -------------- It's simplicity is the best part however I don't know of any place on the net to get the correct data to make one, I have one of the NDX I hand made, but the the main index should be broader than just NDX stocks. Unless I can get the "broadest range" to compare to then making a call from any narrow range would be risky. My NDX Diffusion Index was. Jan 1st 82.5% , April 1st 71% ( a sell signal as it fell as major indexes went up) July 1st 54.5% , ( run like hell signal ).. OCT 1st 35.5% ...maybe bottom but not sure as it could drop to 20% .. ---------------- It's just a list of all the stocks in an Index..and should be used in conjunction with ALL NYSE ..then ALL Nasdaq issues that have been trading for at least two years ( no recent IPOs in it ) The usual time frame is 36 to 39 weeks and weekly input is OK ( it's a longer term type index not suitable for short term trading ) each stock is compared to it's price 36 to 39 weeks back ( takes out a lot of jiggles) and if the stock is higher it gets a 1 if lower a 0..if flat a .5 then that total is divided by the total number of issues and converted to a percentage. It's divergence from the major indexes are the signals, both up and down, it will lead the indexes, dropping or rising before they do. Jim