Four Indicators That Will Change Your Trading Life Completely!

Let The Odds Work For You

The table below highlights the amount of positive weeks in percent made by the S&P 500 since 1996. Additionally you see the same analysis for investors who would have invested according to our amazing breadth indicators. On average those investors would have made a gain in more than 70 percent of the time while Buy & Hold Investors would only have made a gain in 55 percent of the time.

4 Indicators to Make Your Money Work For You In Every Month Of A Year!

The High-Low Index

Description:

The High-Low Index is a breadth indicator based on new highs and new lows made on Nyse. New high refers to the number of stocks reaching a new 52-week high. New low refers to the number of stocks reaching a new 52-week low. The index is calculated by dividing the number of new highs by the number of new highs plus new lows. This ratio shows new highs relative to the total (new highs plus new lows). The High-Low Index is a measure of underlying strength or weakness of the S&P 500.

Indicator Details

	Updated:	•	weekly
	Signals:	•	Bullish: New highs above new lows
		•	Bearish: New highs below new lows
		•	Watch out for divergences between the market and advancing issues

Upside-/Downside Volume Index

Description:

This indicator is calculated by dividing the weekly upside and downside volumes by the weekly total volume. If prices move steadily upward (strong uptrend) with strong volume, this indicates that buyers are accumulating shares. A healthy market should be supported by strong up volume. If not there is a negative divergence between the market and breadth. This could happen, if only heavy weighted stocks in an index are pushing the market higher but the majority of small weighted stocks are already being sold by investors. By separating the up volume from the down volume, investors can get an insight about the future direction of the given index or market. Divergences between the market and volume should be monitored closely as a trend reversal could be ahead!

Indicator Details

	Updated:	•	weekly
	Signals:	•	Bullish: Upside volume above downside volume
		•	Bearish: Upside volume below downside volume
		•	Watch out for divergences between the market and advancing issues

Advance-/Decline Index

Description:

This indicator is calculated by dividing the weekly advances and declines by the weekly total issues. If prices move steadily upward (strong uptrend) a broad number of stocks should participate. If not there is a negative divergence between the market and breadth. This could happen, if only heavy weighted stocks in an index are pushing the market higher but the majority of small weighted stocks are already being sold by investors. By separating the advancing from declining issues, investors can get an additional insight about the direction of the market. Divergences between the market and advancing issues should be monitored closely as a trend reversal could be ahead!

Indicator Details

	Updated:	•	weekly
	Signals:	•	Bullish: Advancing issues above declining issues
		•	Bearish: Advancing issues below declining issues
		•	Watch out for divergences between the market and advancing issues

Modified McClellan Volume Oscillator

Description:

This indicator is derived from the weekly net volume, the number of advancing volume less the number of declining volume. By applying 2 exponential moving averages (short and longer one) of net volume this is a perfect momentum as well as breadth indicator. The Modified McClellan Volume Oscillator is a momentum/breadth indicator that works similar to MACD.

WSC used a slightly different formula to calculate the McClellan Oscillator.

Indicator Details

	Updated:	•	weekly
	Signals:	•	Bullish: McClellan Short closes above McClellan Long
		•	Bearish: McClellan Short closes below McClellan Long
		•	Watch out for divergences between the market and that indicator