On Decision point there was an item which said if the number of stocks above 200,50 and 20 day Moving averages are beyond certain thresholds eg 70 or 80% of the total stocks.. then we could be topping.
Has anyone done any work on this and would be willing to share...
TIA?
Stocks above 200 day ma etc
Started by
ecpinto
, May 22 2007 04:38 AM
2 replies to this topic
#2
Jnavin
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Posted 22 May 2007 - 06:32 AM
On Decision point there was an item which said if the number of stocks above 200,50 and 20 day Moving averages are beyond certain thresholds eg 70 or 80% of the total stocks.. then we could be topping.
Has anyone done any work on this and would be willing to share...
TIA?
Bullish percent SPX
#3
qqqqtrdr
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Posted 22 May 2007 - 08:13 AM
I've done work in this area, and usually topping happens when 70 - 80% or stocks are above the 200-day moving average on the NYSE. However, it is also a sign of strength, and the IT has around a 66% chance of happening in the next two weeks. I have not found it though to be a reliable indicator for trading.
Barry
The other thing I use is the number of stocks trading above a 50-day moving average on NDX. If 90+ stocks are trading above the 50-day MA, it is a ST sell signal until less than 80% of stocks are trading above the 50-day MA ( vice-versa for the bullish scenario on the downside. In this case it is also a signal of strength so the overall trend is bullish with a short term sell.
Barry
