Day Traders Should Reduce Leverage If This Indicator Turns Bearish!
Have You Ever Thought About An Indicator To Fine-Tune Leverage?
This indicator is a leading trend/breadth indicator as it leads the price move. The bigger the difference between the current price and the price 20 days ago, the higher the value of this amazing indicator. When the indicator is above 0, the percentage price change is positive (bullish). When the indicator is below 0, the percentage price change is negative (bearish). This indicator is especially reliable when a new high or low of the market is not confirmed by momentum.
Bullish: Advance-/Decline 20 Day Momentum above 0
Bearish: Advance-/Decline 20 Day Momentum above 0
Watch for divergences between the S&P 500 and the Advance-/Decline 20 Day Momentum for additonal informaton
Why The Crowd Has To Lose All The Time!
The markets are an ever and everything discounting mechanism and the product of the behavior of all their participants and, of course, not everybody can win. In order for every market to function, the majority of the participants have to lose. This majority is usually the uninformed and ignorant crowd, who rather relies on hot tips or even sheer luck like a gambler, instead of doing some homework and spending an extra buck for valuable and useful information.
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