Find Intraday Turning Points With The Advance-Decline Line

Each week in my Technical Market Outlook post I show a daily chart of the NYSE Advance-Decline Line. I think this is a great tool for ‘monitoring’ the health of the equity market, but it can be used on multiple time frames. This is the topic of my TraderPlanet post for this week. I show how we can use the A-D Line and the Relative Strength Index to find potential turning points in the market on short-term 30-minute chart.

Here’s a piece:

Most recently we saw price begin to find some support near the 1816 area [for the S&P 500 ($SPX)]. Each of the three tests were accompanied by higher lows in the RSI indicator as well as higher lows in the Advance-Decline Line. This told us that momentum was rising and more stocks were advance vs. declining as the price action began to form a short-term bottom. Over the next couple of days we saw the S&P 500 rise over 50 points.

Read the rest: Advance-Decline Line: Find Intraday Turning Points (TraderPlanet)

Disclaimer: Do not construe anything written in this post or this blog in its entirety as a recommendation, research, or an offer to buy or sell any securities. Everything in this post is meant for educational and entertainment purposes only. I or my affiliates may hold positions in securities mentioned in the blog. Please see my Disclosure page for full disclaimer. Connect with Andrew on Google+, Twitter, and StockTwits.

About Andrew Thrasher, CMT

Andrew Thrasher, CMT is a Portfolio Manager for an asset management firm in Central Indiana. He specializes and writes about technical analysis as well as macro economic developments.