Info!! A Dissimilar Manner To Piece Of Employment Traditional Technical Indicators

The to a higher house nautical chart depicts a running cumulative full of purchase signals minus sell signals for all NYSE stocks for the Wilder Parabolic SAR indicator (raw information from the splendid Stock Charts site).  It has been a useful overbought/oversold mensurate for the wide stock indexes.  Note how we've bounced off an oversold degree recently.

Interestingly, going dorsum to June, 2014 when I began collecting these data, daily purchase signals bring correlated alongside daily sell signals yesteryear alone -.35.  If nosotros simply perform a median split upward of the purchase signals, nosotros honour that when nosotros bring a high publish of purchase signals, the side yesteryear side v days inward SPY average a make of alone +.01%.  When nosotros bring had a depression publish of purchase signals, the side yesteryear side v days inward SPY bring averaged a make of +.31%.  

I compute like stats for the Bollinger Band; CCI; ADX; together with RSI indicators together with honour value inward tracking purchase signals together with sell signals, also every moment cumulative running totals of their differences.  Treating purchase signals together with sell signals every moment distinct variables ends upward offering unique value--it's a really unlike agency of making role of traditional technical indicators.

Further Reading:  Tracking Market Strength
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