The Secret Weapon of Technical Analysis

[jswanson 10]

The vast majority of technical indicators perform a computation on the price or volume of an individual security.Â* While these indicators can provide valuable insights, most traders ignore the most effective type of technical indicators.Market Breadth IndicatorsMarket breadth indicators do...

[natureboy1618 10]

I must say i do like the Arms index. Still experimenting with it, though it does appear to be workable (i've only really looked at two week data).. My first thought was to use an OB extreme close to forecast a down day in the S&P tomorrow. Doesn't always work, i'll be looking into it some more though

[steve46 12]

As a general rule, looking where others aren't (looking) offers the highest potential utility

 

I like the work of Ken Shaleen. It works for me..

 

His book is expensive "Volume & Interest" (published by Cutting Edge Trading). As I recall my copy bought a long time ago was about $150.00. It could be more now. An alternative (if you don't want to spend the money) is to research his comments on the Internet and try to fill in the blanks, or have someone who knows his work train you....

 

Wish I could say more about that, but I have a Globex class starting in 20 minutes and I have to finish my lesson plan.

 

Best of luck

Steve

 

PS....by the way "Technical Analysis & Options Strategies" (same author) is also pretty good for those interested in that approach...

Edited April 6, 2013 by steve46

[markcrisp 10]

Price and voulme for over 20 years......Nothing else. oh common sense. Dumped all other T.A. years/decades ago.

[tradelab03 10]

Market breadth indicators do not use information based on a single security, they use information based on every security - and all securities are treated equally. This is very different from calculating an indicator value on an index or exchange traded fund (ETF), most of which are capitalization weighted.