Question for Volume Experts

F

fseitun

Anyone can explain how the NYSE/NASDAQ adv-decl volume was negative and plunging the whole day while eminis were building a bottom and eventually rallied into the close?

How can this be?

Anyone with some adv-decl volume knowledge can shed some light on how this can be possible?

Bearish volume all day and the DOW rallied almost 100pts?

In addition, advance-decline ratio clearly pointed at a strong downtrend day yet the markets hit a bottom shortly after 11:00am ET and crawled back up from there.

Why weren't market internals showing any signs of recovery?

I'm not a volume expert by any means, but usually when the adv-decl volume produces a steady relentless climb/drop right off the open, the day translates into a trend day where the markets close near their HOD/LOD.

Today market internals showed a high possibility of a downtrend day but the markets did their own thing after 11:00am ET.

Anyone can chime in and explain today's controversy?

Thanks and good trading.
 
Divergence. I don't have it handy but I just saw a chart posted with Emini S and P made a new high, but AD line didn't. It's often a warning of a reversal to come.
 
Quote from dandxg:

Divergence. I don't have it handy but I just saw a chart posted with Emini S and P made a new high, but AD line didn't. It's often a warning of a reversal to come.
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You are talking about adv-decl lines, which is something else that is not treated in here.

I am referring mainly to adv-decl VOLUME LINES.

In fact, I am looking for volume experts to answer my question.

If you are one, then read my post more carefully.
 
Do a search on Wyckoff. Reversing on decreasing volume is a key signal of strength as is rising on low volume, but you need to took left to see what was happening to PA and Vol last time at this level and compare with this.
 
Quote from fseitun:

how the NYSE/NASDAQ adv-decl volume was negative and plunging the whole day while eminis were building a bottom and eventually rallied into the close?
More...


Adv/Decl volume definition is helpful:

Quote http://www.marketvolume.com/content/products/advance_decline/advance_decline_volume.asp:

"Declines volume" is the running total (cumulative sum) of the number of shares traded for all those securities that belong to the declines group for a given time period. If a particular security is currently trading below its close the previous trading day, its volume is added to the total volume of the declines group.
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In other words:
Volume is added to the declining volume group as long as a security is trading below its close from the current day (no matter whether this makes sense or not).

Therefore if the market opens significantly lower than it closed (like yesterday) all volume will be added to "declining volume" no matter if the stocks are going up or down as long as the level of the day before is not reached.


Most (if not all) those public available breadth indicators are quite poorly designed.
They don't give away the goodies for free.
 
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