NYSE Advance/Decline Line is a Market Breath indicator.
Brought to you by IQ-trading (Andrei Bogdan) via Trading View Pine script. If you find this helpful in anyway, please leave a like!
A/D line calculates a ratio between total number of NYSE stocks advancing and total number of NYSE stocks declining in one day, providing another way to grasp the market breath at any moment.
Green columns mean more than 50% of NYSE stocks are advancing, red columns mean more than 50% of NYSE stocks are declining.
Green values above the top band mean correlation to the upside, red values bellow the low band mean correlation to the downside.
Correlation means rising probability of capitulation (to the upside or to the downside).
For a better interpretation, NYSE Advance/Decline Line should be used in conjunction with other indicators (volatility, volume, etc.).
Note di rilascio
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NYSE Advance/Decline Line is a Market Breath indicator. Brought to you by IQ-trading (Andrei Bogdan) via Trading View Pine script. If you find this helpful in anyway, please leave a like! A/D line calculates a ratio between total number of NYSE stocks advancing and total number of NYSE stocks in one day, providing another way to grasp the market breath at any moment Green columns mean more than 50% of NYSE stocks are advancing, red columns mean more than 50% of NYSE stocks are declining. Green values above the top band mean correlation to the upside, red values bellow the low band mean correlation to the downside. Correlation means rising probability of capitulation (to the upside or to the downside). For a better interpretation, NYSE Advance/Decline Line should be used in conjunction with other indicators (volatility, volume, etc.).
Hi there. The indicator calculates the ratio between total number of NYSE stocks advancing and total number of NYSE stock. I noticed the mistake after I published the script, and as there is no way for me to edit the description, I leave this "errata" in the comments.
christopher1000000000000
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Great work! Have you ever built anything where you group by the industry/sector to aid signals on ETFs? Im thinking of doing this with some weight function (i.e. market cap) and outlier filter (i.e. earnings or volatility +- 5%). For example just as you did with all stocks on NYSE positive or negative, take all stocks in certain industry (JPM, GS, MS, BAC, WFC, etc) and instead of positive or negative %, see if a lagging indicator on a smaller timeframe can help predict the movement of (XLF (financial etf)) on a higher timeframe. So if ETF is at top of its trend and majority of stocks in that ETF are outside of average deviation or have momentum signal on the 3m/5m/10m, use that as a signal for the etf on the 30m,1h,4h timeframe. Then see what combinations of indicators work best. So instead of manually going through this, have a table with (SPY, QQQ, DIA, XLF, XOP, XLE, SOXX, XBI, etc.) and the script display red green or gray (ternary condition) for signals. If increase the small and large timeframes to 15m/30m : 4H/D this would be great for portfolio optimization. Anyways those just my thoughts and sharing what ideas it sparked. Imma be publishing scripts soon, thanks for sharing yours!
IQ-trading
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@christopher7000boss, Hi Christopher. Thanks for your feedback. I am thinking of building some scripts based on the industry/sector ETFs in the future. The thing is that we need to find aggregated data on these ETFs, otherwise we should bring into the script requests for each asset within the ETF (which wouldn't be impossible, but still... hard enough, and not elegant at all from the scripting perspective). My work is focused on the market mechanics and volatility (being mainly an options trader). On the other hand, my thinking being mainly quantitative, I have trouble digesting the "prediction" side of this business, but anyhow... we can find probabilities in anything, I suppose...