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

To: Casaubon who wrote (8814)	3/23/1999 3:04:00 PM
From: donald sew	Read Replies (1) \| Respond to of 99985

Casaubon, >>>> The A/D line declination had been travelling along at some speed and has now accelarated the speed at which it is declining. We should always pay attention to change, it is saying something. <<<<< Also watch the NEW HIGHs/NEW LOWs in the same manner. The market is down strongly today so the NEW LOWs should be larger than the NEW HIGHs. The key now is when we get a relatively flat day will the NEW LOWs still greater than the NEW HIGHs, if so that implies more negativity. Rate of change is more valid in predicting the market than stagnant numbers. seeya

To: Casaubon who wrote (8814)	4/17/1999 11:12:00 PM
From: TheHahnz	Respond to of 99985

Thx for the response Casaubon.... My interest in the A/D line is primarily driven from the amount of press it seems to receive in the financial media (continuously reporting the lack of breadth in the market) as though it is suppose to indicate some underlying weakness in the market. The long term diversion between the A/D line and the Indexes is a curiosity. The best explanation I have seen to date is @decisionpoint.com (under historical charts). Their theory is interesting; stocks tend to move up in spurts.... maybe up 4 pts over a two day period, then down 1 pt for a 4 day period of consolidation. In this example, the stock is healthy and up 3 pts, but the A/D calculation would result in a negative 2. Another interesting discussion is their conclusion that price leads the A/D, vs the typical interpretation of A/D leading price....