[EquisMetaStock Group] Re: Index & AD Line Divergence Indicator - Help

[pumrysh <no_reply@xxxxxxxxxxxxxxx>]

Tono,

I really have reservations about what you are asking.
Here's why. What you have drawn looks nice but it is after the events have taken place. Notice that the A/D line is not a straight line...it goes up and down. The same holds true for your index. The best that you should expect is to use a smoothing method like a moving average. When you do this you will introduce lag meaning that the movement will be after the fact and not current. So basically you will gain nothing.

I'm not saying that what you want can't be done, just that its going to require a lot of work.

Preston



--- In equismetastock@xxxxxxxxxxxxxxx, Tono <tonmdn@xxx> wrote:
>
> Dear all,    
>     
> Can anyone help me to create an indicator that show each stage of market as defined below :
>      
> Stage 1 : On a bottom, the Index line will stop downward move and move higher but the A/D Line will continue down. This indicates the start of a bull market.
> 
> Stage 2 : A/D Line and the Index going up , then market in stage 2
> 
> Stage 3    : on stage 3 there should be a widening gap /divergence between the index and A/D lines, as the A/D Line loses momentum but Index line continue higher.
> 
> Stage 4 : A/D Line and the Index going down , then market in stage 4
> 
> and how to incorporate the above indicator in exploration of individual stock?     
> in example : I want to find stocks that have moving average golden cross but only when market are in stage 1 or 2 .   
> 
> I have attached an image on this email and uploaded an image to EquisMetaStock Group under "Photo" section within album "Index & AD Line Divergence" for a picture    
> worth a thousand words.    
> 
> Thanks in advance
> 
> 
> Tono
>




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