4 replies to this topic

[ogm]

Here is the chart that shows trendline break, that A-Ha posted. He posted NASI but they look alike.
I may be completely wrong, but looking at this chart I don't see NYSI trendline breaks as relevant.
As a matter of fact both previous trendline breaks on this chart have been precursors to significant rallies.

However RSI seems to be a better tradable indicator.

Low RSI to me means that many stocks have been declining for a long time and most likely have reached oversold conditions.

If I'm wrong, please explain the relevance of trendlines on summations. Because I don't see it.

Edited by ogm, 11 August 2007 - 08:44 PM.

[NAV]

I am not saying trendline breaks are not relevant. But we had a similar trendline break in 2005. But that was the bottom. I just posted it on XD's thread, if you are interested.

Edited by NAV, 11 August 2007 - 10:12 PM.

[ogm]

I am not saying trendline breaks are not relevant. But we had a similar trendline break in 2005. But that was the bottom. I just posted it on XD's thread, if you are interested.

yes, I see the similar trendline break in the end of 2005, that was also the bottom.

[LarryT]

I am not saying trendline breaks are not relevant. But we had a similar trendline break in 2005. But that was the bottom. I just posted it on XD's thread, if you are interested.

yes, I see the similar trendline break in the end of 2005, that was also the bottom.

BREADTH MOMENTUM GENERAL
The McClellan Oscillator, Intermediate Term Breadth (ITBM) and Summation index are breadth-based indicators derived from the daily advances-declines on the New York Stock Exchange. The most important information is the market breadth indicators are best used in determining ST and IT market risk not price action. A Buy Signal means the underlying market breadth momentum is bullish while a Sell Signal means the underlying market breadth momentum is bearish. Based on the current signals there is a higher probability of being successful when trading with the ST and IT underlying market breadth momentum trend. The beginning of a significant bull market is indicated when the Summation Index crosses above +1900 after moving upward more than 3600 points from its prior low (e.g., the index moves from -1600 to +2000.)

The better use of the summation is as follows; This is the NOT ratio adjusted which is what I use. The neutral value is not zero, the neutral value is +2000. This weekend the value is -1241 so to be back in a bull market it has to advance 3600 points. A trend line break means nothing, what is meaningfull is how far above 2000 and how far below 2000 the summation goes. The summation index peaked momentum in April at 4015, dropped bellow 2000 in June to 1902, bounced back to 2018 and has dropped 3259 pts. Selling momentum has slowed to a crawl so we either have a low this week or it continues lower to other major low values. May 2004 -1585, July 2002 -2341 September 1998 -3987. In 2003 is was above 6000.

Larry

[borland]

Consider that the above charts are not normalized to number of issues traded on the exchange. Besides other factors, IPOs and delistings, over time, will offset the results of advances minus declines.