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ADDO


Advance-Decline Divergence Oscillator

04/01/00 01:39:07 AM
by Jason K. Hutson

Advance-Decline Divergence Oscillator

Security:   N/A
Position:   N/A

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.



Jason K. Hutson

Traders.com Staff Writer. Enjoys trendlines, support and resistance, moving averages, RSI, MACD, ADX, Bollinger bands, parabolic SAR, chart formations, and volume analysis.

Title: Industrial Engineer
Company: Technical Analysis, Inc.
Address: 4757 California Ave SW
Seattle, WA 98116
Phone # for sales: 206 938 0570
Website: Traders.com
E-mail address: JasonHutson@Traders.com

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