|The relationship between the DJIA and an Advance Decline line is averaged over the preceding year by a regression line as described in the July 1988 issue of Stocks & Commodities:|
Expected DJIA value = A + B(cumulative A-D)
This line will produce the average expected value of the DJIA for any current Advance Decline. Then, the actual level
of the DJIA is compared to the expected value.
ADDO is the percent difference:
ADDO = (100 %B4 D/(A + BE)) - 100
Where D = DJIA, E = cumulative advance/decline volume, and A and B = regression constants
calculated by a four-column spreadsheet (S&C, July 1988).
If ADDO is positive, the DJIA is pulling ahead of A-D (A-D is falling behind the DJIA.) A positive value
is bearish and a negative value is bullish.
|Company:||Technical Analysis, Inc.|
|Address:||4757 California Ave SW|
|Seattle, WA 98116|
|Phone # for sales:||206 938 0570|
Traders' Resource Links
|Charting the Stock Market: The Wyckoff Method -- Books|
|Working-Money.com -- Online Trading Services|
|Traders.com Advantage -- Online Trading Services|
|Technical Analysis of Stocks & Commodities -- Publications and Newsletters|
|Working Money, at Working-Money.com -- Publications and Newsletters|
|Traders.com Advantage -- Publications and Newsletters|
|Professional Traders Starter Kit -- Software|
Click here for more information about our publications!