Saturday, October 06, 2007

TD Combo Based Advance-Decline Indicator

I have put together a advance-decline using the rules of the TD Combo countdown. The basic rules are a follows: When a TD Combo buy countdown day is recorded, a negative number one is assigned. When a TD Combo sell is recorded, a positive number one is recorded. The two results are added together and then summed to give the new indicator. This relatively simple indicator reduces the noise in the typical price chart. It also seems more susceptible to trendline drawing. The charts below are just a couple examples of using the indicator for confirm price breakouts.

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