|
MetaStock
Indicator - The
New Advance Decline Line
rev. 01/06/97
The formulas and
steps necessary to do the New Advance -Decline
Line from the September 1994 Technical Analysis
of Stocks & Commodities, page 14 by Daniel
Downing are:
Taken from Stocks
& Commodities, V. 12:9 (363-365): A New
Advance-Decline Line by Daniel E. Downing
"Here's a
trading tool that uses a unique version of the
daily advance-decline line of the New York Stock
Exchange (NYSE). This version helps in our short-
and long-term trading of index options and stock
index futures. It gives many good short-term
trading signals and excellent but infrequent
longer-term signals…
The philosophy
behind this tool is that the short-term trader's
capital is finite and that traders have to
reliquify their holdings after a period. Traders
can buy and try to push the equities higher only
so many times before they need to reliquify, just
as only a finite amount of selling waves can take
place before the sellers are out of supplies. A
tool that points to when short-term traders need
to reliquify their positions will also spot when
the markets will soon reverse their trends."
For the Windows versions of MetaStock:
- Load the
advances
- Load the
declines
- Drag the plot
of the advances into the chart of the declines
- Plot the
following custom formula directly on the plot
of advances.
|
Cum(
If( P ,>= ,1000 ,If(C ,< ,1000 , +
1 ,0 ) ,If( C ,>= ,1000 ,-1 ,0 ) ) )
|
|
