Page 22 | Breadth Indicators — Trading Ideas on TradingView

Price & Volume Analysis - using OBV to confirm price action Today's tutorial session was spent examining my volume / money flow tool, the On Balance Volume (OBV) indicator. In this example, notice how price broke initially yet OBV did not. When price broke the uptrend line with a corresponding double top fail on the OBV the short really worked. If my charts help you, or you use my indicators... please consider a BTC donation to allow me to continue my work : 1EBttA56cWsgtsZn83VGiNT8si7inZV5Z5 & follow me on Twitter @CRInvestor Additionally, if you have questions about my indicators feel free to inquire as to when my next Google hangout tutorial session is scheduled so you can ask me in person... (or go here: www.google.com)

How To Spot a Market Peak How to spot market peaks using Advance/Decline ratio (ADR)? First, look for divergence between the market and the indicator. Rising market index accompanied with declining number of advancing stocks means upcoming drop. Second, look for high readings of the ADR. Values above 3.5-4x to be considered as significant. I've done some back testing, which showed pretty interesting results. Here they are: o It is most likely to see ADR higher than 3 during first quarter of the year. Usually that is February or March as it happened in 2010, 2012 and as it seems in the current 2014. o After the peak in ADR with values > 3.5 the bull market continues 40-70 more days before correction occurs (see 2010, 2012). More on: www.capitalhubs.com

SP500: Approaching Bubble Territory?? Part 5: I am Out of Stocks In my series of posts "SP500 Approaching Bubble Territory' I was discussing my arguments for a major bearish move, and i believe we are very close to my awaited point. I am waiting for final confirmation signal which may occur today or Monday to post my short position. For now, I close any long position and cancel any long outlook. Market Breadth: Swings from excessive bullish and bearish sentiment have been a good contrarian market indicator for the past 6 years. Every time the indexes of stocks above or below 200-days Average reached an extreme of 90-100 percent a correction in SP500 was close. Instances where the index started falling, diverging away from the SP500 index (indicating internal strength is weakening) were bearish signals, as at least a hefty correction followed. The chart below Illustrates these divergences, where periods of prolonged divergence followed by a more sever downside move, while minor divergences followed less severe corrections.

Ben Bernanke Speaks and Emerging Markets Taking a Hit Since the crash of 2008 emerging markets have seen enormous amounts of capital inflows. As you can see with volume on this chart money has poored into a very popular Emerging Market ETF, EEM. If you look closely, after significant corrections emerging markets are leading US markets. So look for EEM to push out of this recent correction at a higher rate of return compared to the S&P, DJIA and Nasdaq. What the chart is telling us with this volume and Fibonacci study, emerging markets have capitulated in the near term. On balance volume OBV is near the 2011 US market/Emerging market bottom. Chaiken Money Flow as well as the Elder Force Index, both volume indicators, are suggesting capitulation as well. If I were to use CMF and EFI, I would wait to see both cross the 0 median line before getting bullish. Another new indicator is the volume weighted-adjusted moving average VWMA. The Volume Weighted Moving Average is a weighted moving average that uses the volume as the weighting factor, so that higher volume days have more weight. It is a non-cumulative moving average, in that only data within the time period is used in the calculation. When the VWMA is distant from the actual price, it suggest capitulation. On weekly the VWMA is at 42.07 while price barely stands on a recent fib line at 38.61. Looking at price action we can see we have made higher highs and lower lows since the 2011 drop. With the larger fib line (shown on the thumbnail image, not here} we might want to look at is the .382 retrace at 37.90 for support and 37.21 for further support/possible weekly tweezer bottom in the near term.