actio-et-reactio
Balance is but a brief transition between extremes.
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Tuesday, January 04, 2005
Advance-Decline Volume Study
John Wooden, and no doubt other basketball coaches, say to watch a player's hips, not their heads. This sound like the likely origin of "head fake". Well, volume is to price as hips are to head. They are both connected, but volume will tell you where the player is moving. Price is always "right", but it will move where volume takes it.
But enough of basketball, here is a study using $VOLD (Esignal), which is the difference between Advancing Issues Volume and Declining Issues Volume. Divergence studies are never exact, that is, there are often time lags. Those who use RSI or Stoch are familiar with that. So, with that in mind, shown below are various divergence signals using $VOLD vs. $SPX. There is a potential for a Positive Reversal Divergence, in play just now. But that means price must reverse, and stay so, with a corresponding rise in $VOLD. There are clues in the daily chart that indicate a potential rest point or short term reversal also. Time will tell.
Labels: chart-analysis, indicators
At last, over the rim
of the waiting earth
the moon lifted with
slow majesty
till it swung clear of the horizon and rode off,
free of moorings
- Kenneth Grahame,
The Wind in the Willows
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