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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: William H Huebl who wrote (13054)	1/11/1998 8:34:00 PM
From: CatLady	Read Replies (1) \| Respond to of 94695

Bill, I recently ran across this theory of A/D indicator in one of my books: (although I don't remember which book right now) The A/D is considered a leading indicator of the market, so usually the correlation between the A/D and market index is quite high. When that correlation drops, that means there's a divergence between the A/D line and market, with a change in A/D line direction often preceding a change in market direction. Another way to read it, is if the market makes higher highs, but the A/D line only makes lower highs, the market is weak and may turn down and vice versa. Since I read about it, I've been tracking the A/D line against the SP500, and it's a good indicator, but not always leading by much. I really should plot it against the NYSE index since that's what TC2000's A/D line is computed from. BTW, TC2000 has a VIX--X volatility index available, don't know if it's the same as your VIX? CL