Breadth Indicators

One of the usual tool to look at change in overall market direction is breadth indicator. There are number of breadth indicator in the market and to get a comprehensive idea about them you should read The Complete Guide to Market Breadth Indicators by Gregory Morris.
Some of the popular breadth indicators are:

Advancing - Declining Issues
Advance/Decline Line
Advance/Decline Ratio
Breadth Thrust
McClellan Oscillator
The McClellan Summation Index
New Highs-Lows Cumulative
New Higs-Lows Ratio
New High/Lows

If you are Telechart user , you will notice it contains 28 different kinds of breadth indicators. one of the most useful out of that is T2108. Itis currently at 14. Levels below 20 on this indicator tend to lead to bounces.

Once you understand breadth indicators, one can develop a market timing model based on such indicators. Such market timing models indicate zones where turns can appear in market and can identify safer periods for using long or short strategies. I developed Market Monitor after studying the breadth indicators commonly used. Market Monitor is a breadth indicator. The key difference between Market monitor and other breadth indicator is that MM uses significant moves to look at breadth.

The Novice Bear has adopted the Market Monitor concept in Blocks and put together a video on how to use it on his site. It is a good video explaining the basic idea.

Best site to learn to trade

If you are serious about your trading and want to build an enduring edge, the Stockbee Member site might help you.

Members tell me they have tried a lot of things before coming to my site, and it has offered them the most extensive and detailed methods to swing and position trade. Members range from very experienced traders to novices.

No advertising, no hard marketing, no promotions, no free offers, no affiliate marketing, no incentive to other bloggers to promote the site, no constant tweets self-promoting the site, and no tall claims. Every member comes through word-of-mouth recommendations from existing members.

As a member, you will learn the basics of swing trading, momentum investing, growth investing, and risk management. You will learn about Stockbee Momentum Burst breakouts, Stockbee Trend Intensity Breakouts, Stockbee Episodic Pivots Breakouts, Stockbee Lemonade Strategy for 401k, and many other member-shared methods.

You will learn how to set up your own scans, how to select the right kind of stocks, how to set up stops, when to enter, when to exit, how much to risk, how to track your trades, and all other details about trading.

You will learn about developing your own methods and not relying on others for trade ideas. Develop your own edge. Once you develop your own method, you will have a lifelong profitable method.

The site gives you an opportunity to interact with some of the most successful traders and learn from them about their trading methods. It is a vibrant community with members from different backgrounds and experiences willing to help each other. Members have shared their methods, scans, software, backtests, and market insights.

Every day, the emphasis is on continuous learning and upgrading of market knowledge and setup knowledge. The members range from hedge fund employees, financial advisers, active swing traders, investors, and new traders.

You will see that many trading bloggers have been using my market timing methods, scans, and chart templates. They have developed their own methods based on my methods.

Almost every member comes through a recommendation of some of the leading trading bloggers and trading sites. 80% or more members continue to be members for more than 3 years. Most tell me that they stay on because every day they learn so much from the members' site.

If you are looking to develop your own trading strategy, the membership site might be for you. You have to be willing to put in the effort to build your own method. There are no silver bullets offered on the members' site. Every method, every scan, every nuance is detailed, and all possible help is offered to design your own method.

404

Recent Articles