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An indicator of market enthusiasm, the 25-day plurality index is calculated by taking the day's total number of advancing securities on any given exchange and subtracting the declining securities. Then the sum of their absolute values for the past 25 days is found and that value is plotted on a chart. This gives you a moving total. When it's in its higher regions, it's an indication to buy, and when it's lower, an indication to sell. |
Excerpt from: "Plurality" by Arthur A. Merrill, C.M.T., Technical Analysis of STOCKS & COMMODITIES, Volume 8, Number 4. |
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