Here’s Why You Should Watch The Advance/Decline Line

If you are thinking
about opening long positions, do not forget to check the Advance/Decline Line.

This can be plotted on the 5-, 15-minute and any intraday time frame charts.
Especially if you are trading E-mini contracts, pay close attention to the
Advance/Decline Line. 

 

10:50:17 (From TradersWire)

US Stocks Advance/Decline ($ADVDEC) has to improve before
you open long positions. Wait for a breakout above a range.

As you can see above, the Advance/Decline is
trapped in a range at the day
‘s low. Notice,
E-Mini S & P 500 (ESZ4) is also showing a similar movement.

Actually, the market condition deteriorated as the day progressed. But look at 1
and 2 on the
Advance/Decline Line. Those two
spots are good places to open E-Mini long positions.

Have a nice afternoon session!

T.Kamada

If you have questions, feel free to mail them to me.