Hello one and all particularly Old Charlie
The Americans in their TA text books bang on about the Advance/Decline line.
This interesting link points out there is now potentially a divergence which is worth considering.
http://www.zerohedge.com/news/2016-11-2 ... -alert-yes
In some ways, the post-election “Trump Rally” has been among the most explosive stock market bursts of all time. Depending on the market sector or style, some bounces have been multiple standard deviations beyond anything we’ve seen in years. This has left us, naturally, with many attractive-looking charts of stocks, indices, etc., hitting new highs. But as with any rally, this one isn’t “perfect” from a technical perspective. And among the imperfections is a potentially significant one: the lack, as of yet, of a new high in the NYSE Advance-Decline Line.
Dendyver
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Advance/Decline Line Divergence?
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- Lemon Pip
- Posts: 85
- Joined: November 5th, 2016, 1:03 pm
Re: Advance/Decline Line Divergence?
Den,
Apologies for not replying to your post: bit caught up in VOD!
If the A/D line turns flat or falls and the price line continues to rise then it will be giving a signal that looks on the record to be reliable. At present it is still moving up: not as fast as the price line but still no divergence in direction. If you look at the bottom chart it is not yet possible to read a divergence as the scale is so small. Well worth keeping an eye on this. Thanks for the charts.
OC
Apologies for not replying to your post: bit caught up in VOD!
If the A/D line turns flat or falls and the price line continues to rise then it will be giving a signal that looks on the record to be reliable. At present it is still moving up: not as fast as the price line but still no divergence in direction. If you look at the bottom chart it is not yet possible to read a divergence as the scale is so small. Well worth keeping an eye on this. Thanks for the charts.
OC
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