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Breadth the best indicator


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#1 traderx

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Posted 21 September 2020 - 07:49 AM

I recently attended a free talk,  by one of top TA people of all time. During question period, he was asked if you could have only one indicator what would it be. He said BREADTH. I know this is not news to several of the great traders on here, but is just a confirmation.



#2 LMF

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Posted 21 September 2020 - 08:26 AM

SPX AD was the only way you knew the March stuff was just a vanilla flavored pullback. No fuzz on that at all. Easy to compare against 2008 and 2015......

Edited by LMF, 21 September 2020 - 08:27 AM.


#3 Douglas

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Posted 21 September 2020 - 08:29 AM

A very timely comment.  NYSE breadth has very recently been narrowing as the broad indexes have risen and is one of the reasons for my recent warning of a top.  According to my calculations, the NYAD line topped on August 12th and made a lower high on the 2nd of September the day the NYSE, DJIA, etc. topped on a closing basis.  The AD line has recently been carving out a series of lower lows and lower highs helping trigger my system sell signal.  These breath divergence sell signals don't always work obviously since I'm driving a Peugeot and not a Maserati, but betting against them has poor odds.  

 

Regards,

Douglas



#4 traderx

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Posted 21 September 2020 - 08:38 AM

LMF and Douglas great comments and TEAM WORK! 



#5 fib_1618

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Posted 21 September 2020 - 09:06 AM

breadthspx091820.png


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#6 traderx

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Posted 21 September 2020 - 09:07 AM

Thanks Fib



#7 K Wave

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Posted 21 September 2020 - 09:22 AM

Yep all those days with horrible breadth as NQ was near the highs, along with $CPC at ridiculous levels....it was only a matter of time.


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#8 fib_1618

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Posted 21 September 2020 - 09:24 AM

Yep all those days with horrible breadth as NQ was near the highs, along with $CPC at ridiculous levels....it was only a matter of time.


naad091820.png


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#9 K Wave

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Posted 21 September 2020 - 09:40 AM

Currently, worst breadth on Naz today since June....

 

if this holds to close, summation going to breakdown hard from below zero line.....


Edited by K Wave, 21 September 2020 - 09:40 AM.

The strength of Government lies in the people's ignorance, and the Government knows this, and will therefore always oppose true enlightenment. - Leo Tolstoy

 

 


#10 fib_1618

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Posted 21 September 2020 - 09:55 AM

Currently, worst breadth on Naz today since June....

 

if this holds to close, summation going to breakdown hard from below zero line.....

 

Just remember the technical context of such an event.

 

Fib


Edited by fib_1618, 21 September 2020 - 09:55 AM.

Better to ignore me than abhor me.

“Wise men don't need advice. Fools won't take it” - Benjamin Franklin

 

"Beware of false knowledge; it is more dangerous than ignorance" - George Bernard Shaw

 

Demagogue: A leader who makes use of popular prejudices, false claims and promises in order to gain power.

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