Replies to post #7346 on MDA - Market Direction Analysis (MDA)

[Public Heel]

Good stuff! It's interesting how much the Nasdaq New Highs chart look like the BPCOMPQ. Since the BPCOMPQ only goes back three years (or so I've heard), I wonder if it's valid to use the Nasdaq New Highs chart as a proxy for earlier periods...

[Tom K]

Augie, freakin' awesome charts!

Once again, you've done a ton of excellent work on market breadth. It's going to take me a while to go through these charts thoroughly, so I can't really offer any worthwhile feedback at this point. Again, great job and thanks for posting.

I like breadth indicators for 3 reasons. First, most breadth indicators are most useful for intermediate term market cycles. I prefer to to trade intermediate term. Second, breadth indicators do a good job of identifying the current market trend. Last, they help identify areas of higher risk/reward potential (via OB/OS levels).

Here's the tricky part: Identifying indicator reversals early enough to take full advantage of the next trend without getting whipsawed - or jumping the gun.

Augie, have you ever thought about using a ROC indicator of one of your breadth indicators to spot turns before they actually occur? I've been think about this lately but haven't worked on anything yet.

[Myself °¿°]

That's a Hall of a lot of work augie