The Traderszone Network

Published in TZ Latest News 7 May, 2016 by The TZ Newswire Staff

Two Versions of the New York Advance-Decline Line Giving Different Signals

THE TRADITIONAL NYAD LINE HITS NEW RECORD… Chartists look to the NYSE Advance-Decline line to help determine the trend of the stock market. The NYAD line is simply a running cumulative total of the number of advancing stocks minus decliners on the big board. And it has a good track record of leading turns in the stock market itself. Chart 1 shows the traditional version of the NYAD line peaking last May which warned of a market downturn that started last summer and lasted into this year. Chart 1 also shows the advance-decline hitting a record high this spring.

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